The GBP/USD pair is currently displaying a downtrend wedge pattern, a structure that typically signals a bullish reversal when confirmed. The pattern is formed by a descending resistance trendline (in red) and a gradually sloping support line (in green), converging to a point. Price has bounced off the wedge’s support multiple times while forming lower highs, creating pressure that often leads to a breakout.
As seen in the chart, the pair recently surged toward the upper resistance line and is now attempting to break above it. A successful breakout with bullish candle confirmation could lead to a strong move upward.
📈 Breakout Scenario
If the price manages to close above the resistance zone (~1.3490–1.3500), it would confirm the wedge breakout. Based on the height of the pattern, the projected breakout target is around 1.3692. This target is calculated by measuring the vertical height of the wedge and adding it to the breakout point. Confirmation of breakout should ideally include a retest of the broken resistance acting as new support.
📉 Rejection Scenario
However, if the breakout attempt fails and the price gets rejected again from the red resistance line, the pair could retest the wedge’s support area around 1.3360. A breakdown below the green zone would invalidate the bullish outlook and suggest continued bearish pressure.
⚙️ Strategy Tips
✅ Conclusion
This wedge breakout setup offers a bullish trading opportunity if confirmed. The clear structure, repeated tests of both support and resistance, and recent momentum build a strong technical case. Still, confirmation is key before initiating any positions.
=================================================================
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
=================================================================
As seen in the chart, the pair recently surged toward the upper resistance line and is now attempting to break above it. A successful breakout with bullish candle confirmation could lead to a strong move upward.
📈 Breakout Scenario
If the price manages to close above the resistance zone (~1.3490–1.3500), it would confirm the wedge breakout. Based on the height of the pattern, the projected breakout target is around 1.3692. This target is calculated by measuring the vertical height of the wedge and adding it to the breakout point. Confirmation of breakout should ideally include a retest of the broken resistance acting as new support.
📉 Rejection Scenario
However, if the breakout attempt fails and the price gets rejected again from the red resistance line, the pair could retest the wedge’s support area around 1.3360. A breakdown below the green zone would invalidate the bullish outlook and suggest continued bearish pressure.
⚙️ Strategy Tips
- Buy Setup: Enter after breakout candle closes above 1.3500 with stop loss just below breakout zone.
- Take Profit: Use the 1.3692 level as the primary target or scale out on the way up.
- Confirmation: Always wait for breakout confirmation before entering; avoid false breakouts.
✅ Conclusion
This wedge breakout setup offers a bullish trading opportunity if confirmed. The clear structure, repeated tests of both support and resistance, and recent momentum build a strong technical case. Still, confirmation is key before initiating any positions.
=================================================================
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
=================================================================
📈 Trade Smarter with TradZoo!
🔗 Website: bit.ly/tradzoopage
📣 Telegram: t.me/tradzooIndex
📲 Android App: bit.ly/TradZooApp
📲 Forex App:tradzoo.com/forex/download
🍎 iOS App: bit.ly/TradZoo-iOS-App
🔗 Website: bit.ly/tradzoopage
📣 Telegram: t.me/tradzooIndex
📲 Android App: bit.ly/TradZooApp
📲 Forex App:tradzoo.com/forex/download
🍎 iOS App: bit.ly/TradZoo-iOS-App
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.
📈 Trade Smarter with TradZoo!
🔗 Website: bit.ly/tradzoopage
📣 Telegram: t.me/tradzooIndex
📲 Android App: bit.ly/TradZooApp
📲 Forex App:tradzoo.com/forex/download
🍎 iOS App: bit.ly/TradZoo-iOS-App
🔗 Website: bit.ly/tradzoopage
📣 Telegram: t.me/tradzooIndex
📲 Android App: bit.ly/TradZooApp
📲 Forex App:tradzoo.com/forex/download
🍎 iOS App: bit.ly/TradZoo-iOS-App
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.