GBPUSD on a triple bottom 🦐The triple bottom pattern is a bullish reversal pattern that forms after an extended downtrend. It is characterized by three consecutive troughs that are at approximately the same price level, separated by two minor peaks. The pattern is complete when the price breaks above the resistance level formed by the minor peaks, indicating a possible trend reversal.
Now, let's apply this pattern to the 4-hour chart for GBP/USD. We can see that the currency pair has been in a downtrend since the beginning of the year, with prices making lower lows and lower highs. However, in recent weeks, the price action has formed a triple bottom pattern with three distinct lows.
The first confirmation of a potential trend reversal would be a break above the resistance level formed by the minor peaks at around 1.20700. This level has acted as a significant barrier to further price advances in recent weeks, but a break above this level would signal that buyers are gaining control and that the currency pair is likely to continue its bullish momentum.
We can also look for an increase in volume as the price breaks above the resistance level, as this would confirm that buyers are entering the market and pushing prices higher.
Therefore, based on the triple bottom pattern and a potential break above the resistance level, the GBP/USD currency pair is looking bullish on the 4-hour chart. Traders can look for confirmations to set a nice buy order, such as a break above the resistance level and wait for the Plancton's strategy to the satsfied.
