**Chart Analysis: GBP/USD (1H Timeframe)**
**1. Chart Pattern - Rising Wedge 📉**
- The price has formed a **rising wedge**, a bearish reversal pattern.
- A rising wedge occurs when price makes higher highs and higher lows but within a narrowing range, suggesting weakening bullish momentum.
- The price has now broken out of the wedge, signaling a potential downward move.
**2. Key Levels & Targets 🎯**
- **Current Price:** Around **1.29720**
- **EMA Levels:**
- **7 EMA:** 1.29767 (Short-term trend indicator)
- **21 EMA:** 1.29748
- **50 EMA:** 1.29629 (More reliable trend indicator)
- **Bearish Breakdown Targets:**
- **First Target (Red Label):** Around **1.2800**, aligning with previous support levels.
- **Final Target (Green Label):** Around **1.2650**, suggesting a larger move downward if selling pressure continues.
**3. Confirmation of Downtrend? 🔻**
- The breakdown below the rising wedge suggests a potential **downtrend continuation**.
- The **break below 1.2900** would likely confirm a stronger bearish move.
- Volume is increasing on the move down, indicating strong selling interest.
*Possible Trade Setups 📊**
1. **Bearish Scenario:**
- A short position can be considered if price continues breaking below key EMAs and previous support.
- **Entry:** Below 1.2960
- **Stop Loss:** Above 1.3000
- **Take Profit:** 1.2800 (first target) or 1.2650 (final target).
2. **Bullish Reversal Possibility:**
- If price **reclaims the wedge** and breaks above 1.3000, it could invalidate the bearish pattern.
**Conclusion:**
- The **rising wedge breakdown** suggests bearish momentum.
- A move below **1.2900** would confirm further downside.
- **Watch for volume confirmation** before entering a trade. https://www.tradingview.com/x/9IzxzgGf/
**1. Chart Pattern - Rising Wedge 📉**
- The price has formed a **rising wedge**, a bearish reversal pattern.
- A rising wedge occurs when price makes higher highs and higher lows but within a narrowing range, suggesting weakening bullish momentum.
- The price has now broken out of the wedge, signaling a potential downward move.
**2. Key Levels & Targets 🎯**
- **Current Price:** Around **1.29720**
- **EMA Levels:**
- **7 EMA:** 1.29767 (Short-term trend indicator)
- **21 EMA:** 1.29748
- **50 EMA:** 1.29629 (More reliable trend indicator)
- **Bearish Breakdown Targets:**
- **First Target (Red Label):** Around **1.2800**, aligning with previous support levels.
- **Final Target (Green Label):** Around **1.2650**, suggesting a larger move downward if selling pressure continues.
**3. Confirmation of Downtrend? 🔻**
- The breakdown below the rising wedge suggests a potential **downtrend continuation**.
- The **break below 1.2900** would likely confirm a stronger bearish move.
- Volume is increasing on the move down, indicating strong selling interest.
*Possible Trade Setups 📊**
1. **Bearish Scenario:**
- A short position can be considered if price continues breaking below key EMAs and previous support.
- **Entry:** Below 1.2960
- **Stop Loss:** Above 1.3000
- **Take Profit:** 1.2800 (first target) or 1.2650 (final target).
2. **Bullish Reversal Possibility:**
- If price **reclaims the wedge** and breaks above 1.3000, it could invalidate the bearish pattern.
**Conclusion:**
- The **rising wedge breakdown** suggests bearish momentum.
- A move below **1.2900** would confirm further downside.
- **Watch for volume confirmation** before entering a trade. https://www.tradingview.com/x/9IzxzgGf/
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.