Cup & Handle Forming!! - GU
Updated
Here I have GBP/USD on the 1 Hr chart!
Price dipped down into the Support Zone that was recently used in the beginning of July making its Low @ 1.2707!
Afterwards, price came right back up to make an Equal High @ 1.28404 forming quite a popular Reversal Pattern, the Cup & Handle!!
Now this PA formed the "Bowl" and after the Equal High, using the Fib Retracement Tool, we can see Price made a 61.8% Retracement beginning the formation of the "Handle"!
This Higher Low tells us that if this Fib Retracement holds, we could be seeing the end of this Downtrend and the beginning of an Uptrend to the Potential Range Target of 1.29992 - 1.30502!
- Bullish Divergence @ Support
- Violation of Structure from LL to HL
- RSI ABOVE 50
Price dipped down into the Support Zone that was recently used in the beginning of July making its Low @ 1.2707!
Afterwards, price came right back up to make an Equal High @ 1.28404 forming quite a popular Reversal Pattern, the Cup & Handle!!
Now this PA formed the "Bowl" and after the Equal High, using the Fib Retracement Tool, we can see Price made a 61.8% Retracement beginning the formation of the "Handle"!
This Higher Low tells us that if this Fib Retracement holds, we could be seeing the end of this Downtrend and the beginning of an Uptrend to the Potential Range Target of 1.29992 - 1.30502!
- Bullish Divergence @ Support
- Violation of Structure from LL to HL
- RSI ABOVE 50
Trade active
Took Buy Positions @ 1.2793SL @ 1.2773
Trade active
Price made another great retracement to the 55.9 - 61.8 % Retracement Levels!
Comment
Price tried for a Third time coming down Lower and is having a hard time getting back down!
Price is reacting quite Bullishly based on its interactions with my Dynamic Support & Resistance EMA! I believe come London Session, we could see this pair move up confirming the Cup and Handle Pattern!
Trade closed: stop reached
Novi_FIbonacci
Telegram - t.me/+l3fTcsZu91ZiZDkx
Telegram - t.me/+l3fTcsZu91ZiZDkx
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