Around price levels of 1.6780, a Double Top pattern scenario was executed with the neckline located around the price zone of 1.6620-1.6660.
Daily fixation below this price zone enabled the pair to reach 1.6464 (61.8% Fibonacci) as a projection target.
The recently achieved low at 1.6465 (also corresponding to a previous uptrend line) prevented further decline. Yet, the bulls were unable to fix above 1.6630-1.6666 (prominent top established on January 24).
A slide below 1.6580 (previous bottom established on January 24) applies bearish pressure on the pair to pursue towards lower lows around 1.6510 and 1.6470. Otherwise, the bulls would be targeting at 1.6750-1.6775.
As suggested, the price zone of 1.6666-1.6690 offered a valid sell entry. Stop loss should be four-hour closure above 1.6700.
The bears need to achieve a four-hour closure below 1.6600 to push for further lows. However, until now there's no bullish support being offered there.
On the other hand, four-hour fixation above 1.6690 will probably signal weakness of the bears to pursue their downtrend exposing price level of 1.6775 for retesting.
The material has been provided by InstaForex Company - www.instaforex.com
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