This GBP/USD 4-hour chart shows a rising wedge pattern, which is typically a bearish reversal pattern. Here's a breakdown of what's happening:
Pattern Analysis:
Rising Wedge: The price is converging between two rising trendlines, indicating weakening bullish momentum.
The price has broken below the lower support trendline, signaling a potential trend reversal to the downside.
Target Points:
First Target: Near the 1.3350 area – this is typically the first support level after the wedge breakdown.
Second Target: Around 1.3150 – aligning with a previous horizontal support zone and the full height of the wedge projected downward.
Implications:
The chart suggests a bearish move is expected now that price has exited the wedge.
Short positions might be considered below the wedge with stops just above the breakdown point (e.g., 1.3550–1.3600 range).
Traders may aim for the marked target zones depending on risk tolerance and confirmation from other indicators.
Let me know if you'd like help calculating risk/reward or incorporating indicators like RSI or volume for confirmation.
Pattern Analysis:
Rising Wedge: The price is converging between two rising trendlines, indicating weakening bullish momentum.
The price has broken below the lower support trendline, signaling a potential trend reversal to the downside.
Target Points:
First Target: Near the 1.3350 area – this is typically the first support level after the wedge breakdown.
Second Target: Around 1.3150 – aligning with a previous horizontal support zone and the full height of the wedge projected downward.
Implications:
The chart suggests a bearish move is expected now that price has exited the wedge.
Short positions might be considered below the wedge with stops just above the breakdown point (e.g., 1.3550–1.3600 range).
Traders may aim for the marked target zones depending on risk tolerance and confirmation from other indicators.
Let me know if you'd like help calculating risk/reward or incorporating indicators like RSI or volume for confirmation.
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.
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.