Do you think it can form a head and shoulders pattern?If you see a pattern, you can log in.
Don't forget risk management.
GBPUSD trade ideas
GBPUSD breakout could target 1.47GBPUSD is testing key resistance and may be gearing up for a breakout toward 1.47, with a potential 17:1 reward. Even if it reaches just a third of that move, the setup remains highly attractive.
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GBP/USD Analysis (H4 Timeframe)Price has reached a key support level on the 4 hour timeframe. Price could bounce back up. Look for confirmations before entering the trade.
GBPUSD - Sell/ShortsTaking it down to 61.8
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GBPUSD Analysis Today: Technical and Order Flow !In this video I will be sharing my GBPUSD analysis today, by providing my complete technical and order flow analysis, so you can watch it to possibly improve your forex trading skillset. The video is structured in 3 parts, first I will be performing my complete technical analysis, then I will be moving to the COT data analysis, so how the big payers in market are moving their orders, and to do this I will be using my customized proprietary software and then I will be putting together these two different types of analysis.
GBP/USD 3H_BEARISH SETUPThe GBP/USD 3-hour chart displays a Head and Shoulders pattern, a strong signal of a bearish trend reversal. The structure is clearly defined with a left shoulder, head, and right shoulder. A bearish bias is supported by the Ichimoku cloud and moving averages. With the breakdown in progress, traders may consider short positions. The setup indicates momentum favoring sellers, and the projected move aligns with historical behavior following such patterns. The chart also highlights a clear path for a downward continuation based on technical analysis.
Entry Point:
1.32950
Target Points:
Target 1: 1.32060
Target 2: 1.31600
Understanding the Inverted Cup and Handle Chart PatternUnderstanding the Inverted Cup and Handle Chart Pattern
Understanding chart patterns is fundamental for market participants. This article delves into the inverted cup and handle formation, a bearish signal indicating a potential downward movement. Explore its identification, trading strategies, psychological underpinnings, common pitfalls, and more to boost your trading knowledge.
What Is the Inverted Cup and Handle Pattern?
The inverted cup and handle, sometimes called an upside-down cup and handle pattern, is a bearish chart pattern that may appear during up- and downtrends. It is the opposite of the traditional cup and handle pattern, which is bullish. The inverse formation consists of two main parts: the "cup," which is an inverted U-shape, and the "handle," a small upward retracement following the cup.
Identifying the Inverted Cup and Handle Pattern
Identifying the inverse cup and handle pattern involves recognising a specific sequence of market movements that signal a potential bearish move. Here's a step-by-step overview of identifying this formation:
Cup Formation
- Shape: The pattern begins with an inverted U-shaped "cup." The price gradually rises, consolidates, and then begins to decline, reflecting a shift from bullish to bearish sentiment.
- Depth: The cup should have a rounded top, not a sharp V-shape, indicating a gradual reversal. The depth of the cup can vary but typically represents a significant portion of the preceding movement.
Handle Formation
- Upward Retracement: After the cup's formation, prices usually experience a minor upward retracement or consolidation, forming the "handle." This movement should be relatively short and not exceed the initial high of the cup.
- Shape and Duration: The handle often appears as a small flag or pennant and should be brief in duration compared to the cup. An optimal handle retraces no more than half of the cup’s depth.
Breakout Confirmation
- Neckline Break: The pattern is confirmed when prices break below the neckline, the lowest point of the handle. This breakout often leads to a significant decline in prices, signalling a bearish trend.
- Volume Surge: Volume typically decreases during the formation of the cup and increases as prices decline, especially during the handle formation. A substantial increase in volume during the breakout can validate the pattern and minimise the risk of false signals.
The Psychology of the Inverted Cup and Handle
The psychology behind the inverse cup and handle pattern is rooted in market sentiment and behavioural finance. This bearish pattern reflects a shift from optimism to pessimism among traders.
- Initial Uptrend: The formation starts with an upward movement, where traders are generally bullish, driving prices higher. This phase is marked by growing confidence and increasing demand.
- Formation of the Cup: As prices peak, consolidate, and start to decline, some traders begin to take profits, leading to reduced buying pressure. The rounded decline of the cup signifies a gradual shift in sentiment from bullish to bearish as traders become cautious and selling pressure mounts.
- Handle Formation: The minor upward retracement forming the handle indicates a brief period of consolidation where the market tests the resolve of buyers. It can be considered a dead cat bounce. This phase often traps optimistic traders who expect the uptrend to resume, but the overall sentiment remains fragile and cautious.
- Breakout and Decline: The decisive break below the neckline represents a culmination of bearish sentiment. At this point, selling pressure overwhelms any remaining bullishness, leading to a sharp decline. The volume surge during this breakout confirms the shift in market psychology from hopeful to bearish as traders rush to exit their positions or initiate short sales.
Trading the Inverted Cup and Handle Pattern
Trading the inverted cup and handle pattern involves careful identification and strategic decision-making to maximise potential returns. This pattern presents two primary entry points for traders: during the handle formation or after the neckline break.
Entry on the Break of the Handle
- Risk-Reward Advantage: Entering on the breakout of the handle’s lower boundary offers a better risk-to-reward ratio but requires more skill and confidence in pattern recognition.
- Technical Tools: Traders often use a medium-term moving average (like 21 periods) to confirm the downward leg of the handle. A decisive close below the moving average indicates a continuation of the downward handle leg.
- Momentum Indicators: Using momentum indicators like the RSI (Relative Strength Index) or stochastic oscillator helps confirm downward movement. Bearish divergence suggests that the bearish trend is likely to continue.
- Volume Analysis: Increasing volume during the handle's breakout indicates strengthening seller control. High volume often validates the pattern and potentially reduces the risk of false signals. Note that volume data may be less reliable in a decentralised forex market.
- Stop Loss and Profit Target: Traders typically place a stop loss above the handle's high to potentially protect against upward spikes. The reverse cup and handle pattern target is usually set at a distance equal to the cup's height, projected downward from the handle's breakout point, although it can be greater if the retracement is particularly shallow.
Entry After the Neckline Break
- Confirmation Advantage: Waiting for the neckline break offers greater confirmation of the formation but may provide a less favourable risk-to-reward ratio.
- Price Action: A decisive close below the pattern's low, ideally with a strong candlestick and minimal wicks, indicates a reliable breakout. This typically confirms the bearish trend and provides a clear entry signal.
- Volume Confirmation: Higher volume during the neckline break can further validate the pattern and indicate that the breakout is genuine and not a false signal.
- Stop Loss and Profit Target: In this scenario, the stop loss is typically set above the handle's high. The profit target remains the same, projecting the cup's height downward from the breakout point.
Common Mistakes to Avoid
When trading the upside-down cup and handle pattern, avoiding common mistakes is key for maximising potential returns. Some of the more common mistakes traders make include:
- Premature Entry: Entering a trade too early, before the handle completes or the neckline breaks, can lead to false signals and losses. Most traders wait for clear confirmation, such as a decisive close below the neckline with increased volume.
- Ignoring Volume: Volume is a critical component in confirming the pattern. Low volume during the breakout phase may indicate a fakeout. Traders typically look for a substantial increase in volume to validate the pattern.
- Incorrect Pattern Identification: Misidentifying the pattern is a common error. The cup should have a rounded bottom, not a sharp V-shape, and the handle should be relatively short. Accurate identification requires practice and attention to detail.
- Overlooking Market Conditions: External factors, such as news events or broader market trends, can impact the pattern’s reliability. Traders consider these conditions when planning their trades.
Advantages and Disadvantages
As with all chart patterns, the inverted cup and handle pattern comes with its pros and cons. Here are some key advantages and disadvantages of using this pattern:
Advantages
- Clear Signal: The pattern provides a clear signal of a potential bearish movement, helping traders anticipate market declines.
- Risk Management: With defined entry and exit points (handle high for stop loss and cup depth for profit target), it aids in effective risk management.
- Flexibility in Analysis: Several forms of analysis, from support/resistance and momentum indicators to volume and price action, can be used to trade the pattern.
- Versatility: Applicable across various timeframes and markets, including stocks, forex, and commodities, making it a versatile tool for different trading strategies.
Disadvantages
- Complex Identification: Accurately identifying the pattern can be challenging, requiring significant experience and skill.
- Rarity: The pattern doesn’t occur frequently, limiting trading opportunities.
- False Breakouts: Like all chart patterns, it is susceptible to false breakouts, especially if not confirmed with volume and other technical indicators.
- Timing Sensitivity: Entering too early during the handle formation can result in premature positions, while waiting for the neckline break might reduce the risk-to-reward ratio.
The Bottom Line
The inverted cup and handle pattern is one of the most popular chart patterns among traders of all levels. However, like any technical formation, it should be used alongside other indicators and sound risk management to potentially increase its effectiveness. By mastering patterns like the inverted cup and handle, traders can gain deeper insights into market psychology and price action to navigate volatile markets with greater confidence.
FAQ
What Is the Inverse Cup and Handle Pattern in Forex?
The inverse cup and handle pattern in forex is a bearish chart pattern. It features an inverted U-shaped cup followed by a small upward retracement (the handle). This pattern suggests that sellers are gaining control, and prices are likely to decline further once the neckline is broken.
How Can You Trade the Inverse Cup and Handle?
Traders can enter positions either on the break of the handle’s lower boundary or after the neckline break. Entering during the handle might offer a better risk-to-reward ratio, while waiting for the neckline break provides greater confirmation. Key tools to validate the breakout include moving averages, momentum indicators like RSI or stochastic oscillator, and volume analysis.
What Happens After the Reverse Cup and Handle Pattern?
After the reverse cup and handle pattern is completed, the price typically moves downward strongly. This bearish movement is often confirmed by a strong breakout below the neckline with increased volume, signalling a sustained decline in prices.
What Is the Opposite of the Cup and Handle?
The opposite of a cup and handle is the inverse cup and handle pattern. While the cup and handle indicates a bullish movement, the inverse version signals a bearish trend.
Is the Inverted Cup and Handle Bullish or Bearish?
The inverted cup and handle pattern is bearish. It indicates that the price will move downwards, suggesting that traders may open short trades.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
GBPUSD crazy buy here !Im trying this crazy buy here, risk is big but reward is big aswell, todays news of USD will tell us everything , never guys do this but sometimes you gotta take the risk , try to minimize the risk before news as it can liquidate you in 1 minute . Trade safe
9.5 RRR
GL Traders
NOT ADVICE !
GBPUSD Analysis Today: Technical and Order Flow !In this video I will be sharing my GBPUSD analysis today, by providing my complete technical and order flow analysis, so you can watch it to possibly improve your forex trading skillset. The video is structured in 3 parts, first I will be performing my complete technical analysis, then I will be moving to the COT data analysis, so how the big payers in market are moving their orders, and to do this I will be using my customized proprietary software and then I will be putting together these two different types of analysis.
May 6, 2025 GBPUSD Sell📉 Bias: Bearish | Risk: 0.5% | 🎯 Targets: 1:3 (take 75%), final target ~1:7
🧠 Reasoning:
Price reacted from a Daily / Weekly Orderblock with confluence from a 15m OB
Asia Low as target provides clean downside structure
Morning Star formed inside the OB → entry taken at the imbalance left behind
10 pip SL covers highs efficiently ✅
GBPUSD SHORT FORECAST Q2 W19 D7 Y25GBPUSD SHORT FORECAST Q2 W19 D7 Y25
Professional Risk Managers👋
Welcome back to another FRGNT chart update📈
Diving into some Forex setups using predominantly higher time frame order blocks alongside confirmation breaks of structure.
Let’s see what price action is telling us today!
💡Here are some trade confluences📝
✅Weekly order block rejection
✅Daily order block rejection
✅Intraday 15' order blocks
✅Tokyo ranges to be filled
🔑 Remember, to participate in trading comes always with a degree of risk, therefore as professional risk managers it remains vital that we stick to our risk management plan as well as our trading strategies.
📈The rest, we leave to the balance of probabilities.
💡Fail to plan. Plan to fail.
🏆It has always been that simple.
❤️Good luck with your trading journey, I shall see you at the very top.
🎯Trade consistent, FRGNT X
Morning Star To Wake GU TradersFX:GBPUSD has fallen into a Wedge Pattern after breaking Mondays Highs!
Price this morning has seemingly found Support at the 50% Retracement level signaling the potential ending of the Consolidation phase of the Wedge!
This Retracement comes in the form of a Morning Star, a strong Triple Candle Reversal Pattern!
If Price is supported in this area, we could see a Bullish Break to this Pattern delivering a Long Opportunities as a Break and Retest Set-up!
Bearish breakout?The Cable (GBP?USD) is reacting off the pivot and could potentially drop to the 1st support.
Pivot: 1.3261
1st Support: 1.3159
1st Resistance: 1.3333
Risk Warning:
Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
Disclaimer:
The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
GBPUSD will continue to grow after a false breakoutGBPUSD confidently continues bullish trend after 1-week consolidation. But further the price meets resistance from D1 from which, due to the volume of liquidity above the level, can form a correction
Scenario: primary reaction in the form of a false breakout and correction to fvg or to the zone of interest 0.5 fibo. After that, the upward movement within the trend and correction of the dollar may resume.
GBPUSD 30 minutes 📊 Technical Overview
1. Chart Pattern: Double Bottom (Potential Reversal)
The chart highlights a possible double bottom formation near the 1.32700 – 1.32800 support zone, which is a classic bullish reversal pattern.
The second bottom is slightly higher than the first, showing buying interest stepping in earlier — a bullish sign.
2. Trendline & Structure Break
A descending trendline has been drawn connecting the recent lower highs.
The price is approaching the trendline for a breakout. A break and close above this structure would confirm the double bottom and trigger a bullish reversal scenario.
3. Support Zone
Marked in purple and yellow, the support zone around 1.32600 – 1.32800 has held strong multiple times.
Each retest has produced a bullish reaction, indicating strong buying interest in this region.
✅ Trade Idea (If Confirmation Occurs)
Entry: Above 1.3300 (after trendline break and retest)
Stop Loss: Below 1.32700
Take Profit Zones:
TP1: 1.33450 (near recent swing high)
TP2: 1.33800 (prior resistance zone)
⚠️ Key Considerations
Wait for a confirmed break and retest of the trendline — premature entries could result in false breakouts.
Watch for U.S. economic news (like jobless claims or Fed speakers) that might increase volatility.
GBPUSD 45M CHART PATTERNThe GBP/USD 45-minute chart shows a strong bullish breakout above a descending trendline, signaling a potential trend reversal. Price gained momentum after holding above the key support zone around 1.32600. The breakout is supported by strong bullish candles and movement above the Ichimoku cloud, indicating continued buying interest. As long as price remains above the 1.33200 breakout level, the bullish trend is likely to continue. The structure now favors higher highs and higher lows, suggesting upward continuation.
Entry: 1.33850
Target First : 1.34200
Target Second : 1.34800
GBPUSD 15M1: Bullish Divergence.
2: Strong Support on 2H Timeframe.
3: Risk Reward Ratio 1:1
4: We could see a strong uptrend on price action.
Bullish bounce off pullback support?The Cable (GBP/USD) is falling towards the pivot which is a pullback support and could bounce to the 1st resistance which is an overlap resistance.
Pivot: 1.3264
1st Support: 1.3233
1st Resistance: 1.3338
Risk Warning:
Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
Disclaimer:
The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
#GBPUSD: Major Swing Sell Coming On GU, What's your views? OANDA:GBPUSD , as discussed in our previous analysis, where we predicted price would reach our target area and then reject it. The price has almost reached this area, and we are now waiting for it to fully complete the move so that we can take a swing sell on the GBP. Currently, the British pound is stronger and bullish due to the UK’s strong economic growth. However, this is not the case for the US dollar. The dollar is struggling to keep up with other currencies and is currently the worst-performing currency of the month of April.
While focusing on GBPUSD as a pair, it has been extremely bullish since the start of April. However, we are now at a point where there are no strong reasons for the pair to remain bullish and continue its uptrend. There are fundamental signs that will eventually reverse the bearish trend.
Our advice to all is to wait for the price to do its thing. Once it reaches our target area, it may show strong bearish dominance. However, this is not a guarantee that it will behave as we expect. There are two targets that you can focus on once you trade is activated.
Good luck and trade safely!
Thank you for your unwavering support! 😊
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GBPUSD Potential DownsidesHey Traders, in today's trading session we are monitoring GBPUSD for a selling opportunity around 1.33300 zone, GBPUSD is trading in a downtrend and currently is in a correction phase in which it is approaching the trend at 1.33300 support and resistance area.
Trade safe, Joe.
GBPUSD: First red dayHello traders and welcome back on this analysis regarding GBPUSD, as always I never try to predict the direction of the market, long and short are only the setup I'm currently looking for, during the day.
I use technical analysis exclusively to find a proper risk reward for my trades, eventually I position myself in the market.
GBPUSD looks currently pretty interesting to me, and I'm looking to complete a pump and dump template started on Monday.
Just few words about the previous week, the previous Tuesday which placed the weekly high, it's a level which began an interesting bearish move, and currently the market is retesting that level.
The previous Tuesday and Wednesday placed the weekly range, and I'm gonna see how the price will behave on the extreme.
This week, last week of April, I can see on Monday a strong impulsive move, which is our pump for the weekly template, the market triggered long breakout traders and closed as well above the previous week high, other time frames/big players are involved on further movements.
Tuesday, the market stayed pretty much inside, it kinda triggered the daily high, but the most important signal to me, is that it closed as a first red day after a full day of consolidation up high.
Today, a bearish move looks like has already started, but considering still plenty of space down low, I can still be looking for further downward move.
Major red news are on schedule at 10am NYT, so no action will be taken before that time.
However I will be looking for the market to pump up 25/50pip, coiling for an explosive bearish move, targeting the low of Monday (which would eventually complete the weekly pump and dump), and potentially trailing a partial even lower.
I will update this post after the news at 10am NYT
Gianni
