GBPAUD 4H Sell Setup: Rising Wedge Breakdown & Fibonacci Targets
This chart represents a sell setup for the GBPAUD currency pair on a 4-hour timeframe. The setup is based on multiple technical analysis tools, including support and resistance zones, trendlines, Fibonacci retracement levels, and a rising wedge pattern. Here's a breakdown:
1. Resistance Zone & Price Rejection
The red horizontal zone near 2.06490 - 2.06318 represents a strong resistance area where price has previously struggled to break through.
The price attempted multiple times to break this zone but failed, indicating selling pressure from institutional traders.
2. Rising Wedge Breakdown
The yellow ascending trendlines outline a rising wedge pattern, which is a bearish reversal pattern.
The price broke down from the wedge, signaling weakness and a potential trend reversal.
3. "Sell Breakdown" Label & Confirmation
A breakdown signal is shown after price rejects the resistance area and starts making lower highs.
This indicates the start of a downtrend, and a sell entry is confirmed after the breakdown.
4. Fibonacci Retracement Levels
Fibonacci levels are drawn from the swing low to the swing high of the uptrend.
The key target levels:
23.6% (2.04218)
38.2% (2.02962)
50.0% (2.01882)
61.8% (2.00837)
100.0% (1.97473)
The projected price movement (blue arrows) shows the expected drop toward the 100% Fibonacci level (1.97473).
5. Bearish Price Projection
The chart suggests a major downside move as long as price remains below the resistance zone.
The next key support area is near 2.03000, followed by further potential downside to 1.97473 (100% Fibonacci extension).
Summary of the Trade Setup
Sell Entry: After rejection from resistance and breakdown of the rising wedge.
Stop Loss: Above the resistance zone (around 2.06500).
Take Profit Targets: 2.03000 (38.2% Fib), 2.00000 (Psychological level), and 1.97473 (100% Fibonacci).
Risk-Reward: Favorable as the expected drop is much larger than the stop loss.
This analysis suggests that GBPAUD is likely entering a bearish phase, making it a strong sell setup based on price action and technical confluence. 🚀
1. Resistance Zone & Price Rejection
The red horizontal zone near 2.06490 - 2.06318 represents a strong resistance area where price has previously struggled to break through.
The price attempted multiple times to break this zone but failed, indicating selling pressure from institutional traders.
2. Rising Wedge Breakdown
The yellow ascending trendlines outline a rising wedge pattern, which is a bearish reversal pattern.
The price broke down from the wedge, signaling weakness and a potential trend reversal.
3. "Sell Breakdown" Label & Confirmation
A breakdown signal is shown after price rejects the resistance area and starts making lower highs.
This indicates the start of a downtrend, and a sell entry is confirmed after the breakdown.
4. Fibonacci Retracement Levels
Fibonacci levels are drawn from the swing low to the swing high of the uptrend.
The key target levels:
23.6% (2.04218)
38.2% (2.02962)
50.0% (2.01882)
61.8% (2.00837)
100.0% (1.97473)
The projected price movement (blue arrows) shows the expected drop toward the 100% Fibonacci level (1.97473).
5. Bearish Price Projection
The chart suggests a major downside move as long as price remains below the resistance zone.
The next key support area is near 2.03000, followed by further potential downside to 1.97473 (100% Fibonacci extension).
Summary of the Trade Setup
Sell Entry: After rejection from resistance and breakdown of the rising wedge.
Stop Loss: Above the resistance zone (around 2.06500).
Take Profit Targets: 2.03000 (38.2% Fib), 2.00000 (Psychological level), and 1.97473 (100% Fibonacci).
Risk-Reward: Favorable as the expected drop is much larger than the stop loss.
This analysis suggests that GBPAUD is likely entering a bearish phase, making it a strong sell setup based on price action and technical confluence. 🚀
Note
For Training visit.
Website wave-trader.com
Website techtradingacademy.com
Slack: wavetraders.slack.com
Telegram: t.me/Wavetraders
X: twitter.com/Wave__Trader
FB: facebook.com/WTimran
Website wave-trader.com
Website techtradingacademy.com
Slack: wavetraders.slack.com
Telegram: t.me/Wavetraders
X: twitter.com/Wave__Trader
FB: facebook.com/WTimran
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
For Training visit.
Website wave-trader.com
Website techtradingacademy.com
Slack: wavetraders.slack.com
Telegram: t.me/Wavetraders
X: twitter.com/Wave__Trader
FB: facebook.com/WTimran
Website wave-trader.com
Website techtradingacademy.com
Slack: wavetraders.slack.com
Telegram: t.me/Wavetraders
X: twitter.com/Wave__Trader
FB: facebook.com/WTimran
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.