GBPUSD POSSIBLE SELL OPPORTUNITYPrice is rising to a pullback resistance level of 1.26809 a sell opportunity is envisaged if we’d get a pullback to that level. Fundamentally, a weaker USD will aid price to retrace to the marked zone
USDGBP trade ideas
CAN SEE REVERSAL GETTING BULISHTP 1 IS ON RESESTANCE AS PER MY IDEA ITS IN BULISH BEAUSE NO DIVERSION AND MAKING Hifher High and Higher Low, once hit take profit 1 stop loss move to entry point
ABOUT GBPUSDMy option about Is gbpusd more bullish so that zone is good and strong support,if the price comes to that zone it can pullback
GBPUSD Short Trade SetupGbp/Usd getting ready for further declines after a breakout from corrective structure. We'll be entering shorts from here.
Entry: 1.2632
Targets: 1.2480 & 1.2325
Stops: 1.2792
Risk to reward 1:2
GBP USD If we don't break the high, i see some sell set ups maybe in GBP USD
is everyone looking for buys or sells on GBP USD?? been a bullish week
GBPUSD → A breakout of trend resistance. Change?FX:GBPUSD is forming a local trend change attempt. The price breaks the resistance of the descending price channel and forms a consolidation above the line, in the buying zone.
The fundamental background is very complicated and not stable because of Trump's policy and the tariff war with the whole world. Sharp shifting statements have a huge impact on the markets.
Technically, the price is breaking the resistance of the long downtrend and we have a chance to change the local trend. A breakout of the resistance at 1.2488 and a price consolidation above this zone may motivate a buyer to support this move.
Resistance levels: 1.2488, 1.26
Support levels: 1.2414, 1.2377
The price may test the previously broken channel resistance before rising further, but the 1.2488 trigger plays an important role. If the bulls can keep the defense above this area, the currency pair may rally a bit in the short term.
Regards R. Linda!
GBPUSD DAILYGBP/USD trades at a weekly high above 1.2500 in the European session on Wednesday.
The pair could face stiff resistance at 1.2530.
Investors await key macroeconomic data releases from the US, Meanwhile, the chart shows us our next prediction
Why is GBPUSD moving up? Let's talk about the British Pound and what might happen next. The Bank of England has a rate meeting this week, and a 25-basis-point rate cut is anticipated. Meanwhile, the latest ADP report from the US showed stronger-than-expected job growth, with 183,000 new jobs added—higher than the 148,000 expected and the previous 122,000. This suggests the US labor market is performing better than anticipated.
Now, why is GBPUSD moving higher? This is where I need your input. Looking at the monthly chart, we see GBPUSD respecting the 1.19–1.20 level. Historically, we've seen upward moves from here. So, what’s driving this? Some argue that Europe may face tariffs while the UK avoids them. Others suggest that the worst of the US economic turmoil might be over. But I’m not convinced.
I remain bullish on the dollar because the Bank of England is cutting rates and will likely continue to do so. In contrast, the US just reported strong labor market data. When you have a strong labor market, high inflation, and solid GDP growth, rate cuts are unlikely—rates might even increase. If tax cuts and deregulation happen in the US, rates could rise further. Meanwhile, the UK is likely heading in the opposite direction with more rate cuts.
Something doesn’t add up here. However, I have to respect the trend. In the short term, the market has stopped making lower highs, signaling a trend break. The fact that this is happening around key levels is significant. For now, the bullish trend remains intact above Monday’s low at 1.2253. But if deregulation moves forward, this rally may eventually come to an end.
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GBP/USD - End of January AnalysisWith the possibility of Donald Trump imposing tariffs on the UK, the trend to the downside does not look like it is bound for a turn anytime soon.
Monthly, cable closed -0.97% lower with the lower portion of the breaker block being touched ever so slightly @ 1.26156.
I’ll be covering what to expect In the weeks to come.
Short till 1.24628FX:GBPUSD Failure to displace above 1.25481 has warranted a bearish bias towards 1.24628.
GBP/USD Stuck Between Fed Policy and BoE DecisionThe USD Index (DXY) remains near its weekly low as expectations grow for further Fed monetary easing. Tuesday’s JOLTS report signaled a cooling US labor market, increasing speculation of rate cuts despite inflation concerns.
Global sentiment is positive after President Trump delayed tariffs on Canadian and Mexican imports, easing trade war fears. This risk-on mood weakens the USD’s safe-haven appeal while supporting GBP/USD. However, lingering US-China trade tensions and the Fed’s hawkish stance limit USD losses, keeping GBP/USD gains in check.
Traders await Thursday’s BoE policy meeting with key resistance levels at 1.2500, 1.2600, and 1.2650. Support stands at 1.2340, followed by 1.2265 and 1.2100.
Short then Long!Hello all. if market return from 1 the response will be on 2. I emphasize that, If return from 1. It's kinda act and react.
GBP/USD: Waiting for Breakout or Pullback?Hi All!
The Bank of England decision tomorrow adds uncertainty, and we’re keeping a close eye on GBP/USD for trading opportunities!
🔹 Key Levels to Watch:
📌 A confirmed break of 1.25190 resistance would be ideal for a long trade.
📌 Pullback to 1.24-1.23 would offer a more confident entry towards 1.28716 resistance, which has been holding for several days in 2024.
⚠ Potential for Sharp Downward Move: If the Bank of England cuts rates tomorrow, we might see a sudden drop, presenting a chance to buy back towards support zones.
Alternatively, a breakout above 1.25260 could signal the continuation of the bullish trend right now.
💡 Watch closely during today’s and tomorrow’s sessions for market moves!
#GBPUSD #Forex #BankOfEngland #Trading #ForexTrading #ForexAnalysis #GBP #TechnicalAnalysis #SupportAndResistance #Breakout #Pullback #CurrencyPairs #MarketWatch #TradeSmart #FinancialMarkets #TradingOpportunities
GBP/USD Trend Reversal? Smart Money Entering the Market!GBP/USD is a major forex pair representing the exchange rate between the British Pound (GBP) and the US Dollar (USD). The current price is 1.25100, and the target price is set at 1.27000, indicating an expected upward movement. This trade setup suggests a potential gain of over 200 pips if the price reaches the target. A pip, or "percentage in point," is a standard unit of movement in forex trading, where 1 pip in GBP/USD is 0.0001. The trend line breakout confirms a bullish signal, meaning the price has moved above a key resistance level. Strong volume support indicates that many traders are participating in this move, adding to the momentum. A breakout with high volume often leads to sustained price movement, increasing the likelihood of hitting the target. If the trend continues, traders might see further gains beyond the expected 1.27000 level. However, risk management is crucial, as market conditions can change unexpectedly. Keeping an eye on economic news and key events related to the UK and US economies is essential. Overall, this setup suggests a strong buying opportunity for traders looking to capitalize on the breakout.
GBPUSD BULLISH BIASAfter a long bearish fall on GBPUSD have been waiting to see a change of character so i can go LONG on the pair
GBPUSD predicting a bullish breakout Hi traders what do you think about GBPUSD suggestion in comments.
we predicting a bullish breakout for GBP/USD with a target at the resistance zone of 1.26500, and you’re considering the impact of strong fundamentals, particularly related to Trump’s trade policies and global market dynamics.
Trump’s policy tariffs and trade policies are causing global uncertainty, the USD could be weaker, which would benefit the GBP as the British economy might see some stabilization or strength compared to other global economies.
If you like this analysis please support my work and fallow thanks for Love.
Long till 1.25232After respecting the 1H bullish FVG. We can expect to be long till 1.25232. Further analysis required once we get to this point as to which direction the market will go.
Longing GU4h showing price within fair value gap and on 1h taking liquidity. Also showing SMT divergence with EU. Entry on 15m CISD
GBPUSD H4 | FOREX BEELooking at the GBP/USD H4 chart, I can identify the following key observations:
1. Trendline Resistance: The market is currently testing or approaching a key descending trendline, indicating potential resistance at higher levels.
2. Fibonacci Levels: The chart highlights the 0.5 Fibonacci retracement level near 1.2415, suggesting a possible bullish target zone if price breaks above the trendline resistance.
3. Support Zones: The red zones below, particularly near 1.2251 (0.236 Fibonacci), appear to act as important support levels where buying interest may reappear.
4. Market Scenario:
- If the price breaks above the trendline and sustains, it may move towards the next resistance at 1.2415 or higher.
- On the downside, a failure at the current level could push the market back to the support zones around 1.2250 or lower.
This setup suggests a cautious approach for now. A breakout confirmation above the descending trendline would provide a clearer signal for bullish continuation. Conversely, failure to break higher may lead to renewed bearish pressure.
Three Outside Up and Down Candlestick PatternsThree Outside Up and Down Candlestick Patterns: How to Identify and Trade Them
The three outside up and three outside down candlestick patterns offer traders a powerful way to analyse potential market reversals. Formed by 3 consecutive candlesticks they can signal key shifts in market sentiment, providing valuable insights into future price movements. In this article, we’ll break down how traders identify, trade, and confirm these patterns.
What Are the Three Outside Up and Down Patterns?
The three outside candlestick patterns are powerful tools in technical analysis that can help traders analyse potential market reversals. These patterns are made up of three consecutive candlesticks that reveal shifts in market sentiment. There are two variations: the three outside up and three outside down formations, each signalling opposite directions.
In a three outside up pattern, the first candle is a small bearish one, followed by a second, larger bullish candle that completely engulfs the first. The third candle is another bullish one, confirming the momentum shift toward a potential upward trend. This type typically forms after a downtrend, hinting that the market could be turning bullish.
On the flip side, the three outside down candlestick pattern starts with a small bullish candle. The second candle is a larger bearish one that engulfs the first, and the third is another bearish bar, signalling that sellers are gaining control. This formation usually appears after an uptrend and suggests a possible bearish reversal.
Three outside candle patterns are particularly useful because they provide multiple points of confirmation—first, the engulfing candle, and then the third which further solidifies the trend. They often appear on various asset classes, from stocks to forex, and can be a valuable part of a trader's analysis.
The Psychology Behind The Three Outside Patterns
Understanding the psychology driving these patterns can give traders better insight into market dynamics. With the three outside up candlestick pattern, the initial small bearish candle shows hesitation, but the large bullish candle that follows reflects a surge in buyer confidence. The final bullish candle confirms that buyers have taken control, possibly signalling a shift from bearish to bullish sentiment.
In contrast, the three outside down reflects a change from bullish optimism to bearish caution. The first candle shows a continuation of buying pressure, but the second, larger bearish bar reveals that sellers are stepping in with strength. The third bearish candle reinforces this shift in market sentiment.
Identification Steps
Identifying the three outside candle patterns is straightforward once you know what to look for. The key is focusing on the structure and order of the three candlesticks.
Want to have a go at spotting the formation for yourself? Head over to FXOpen to access hundreds of real-time charts.
Three Outside Up Pattern
- First Candle: This is a small bearish candlestick that occurs within a downtrend. It suggests that the market still favours sellers, but it’s weak.
- Second Candle: The crucial point of the formation. The second candle is a much larger bullish one that engulfs the entire body of the first one.
- Third Candle: Another bullish candle that confirms the pattern. Its close is above the second’s close, solidifying the upward momentum.
Three Outside Down Pattern
- First Candle: This is a small bullish candle within an uptrend, reflecting weaker buying interest.
- Second Candle: The key feature. A larger bearish bar fully engulfs the first one.
- Third Candle: A second bearish candle follows, closing lower than the second and reinforcing the shift in sentiment toward selling pressure.
Other Considerations
- Engulfing Candle Size: The bigger the second candle in relation to the first, the stronger the signal. It indicates a more decisive shift in market sentiment.
- Timeframe: They can appear across various timeframes, but they're expected to be more reliable on longer ones, such as daily or weekly charts. Lower timeframes can lead to wrong trade decisions.
- Context: While the formation itself is important, it’s key to consider the broader market environment. Combining it with other forms of analysis, like trendlines or indicators, can increase the reliability of your trade decisions.
Three Outside Candle Pattern: a Trading Strategy
Trading the three outside up and three outside down patterns requires understanding both how to spot the signal and how to manage the trade. Here’s a step-by-step approach to using these patterns in real-world scenarios.
Entering a Trade
For both types, traders typically wait for the close of the third candle to confirm the pattern before making any moves. For the three outside up, a trader may analyse the close of the third bullish bar as confirmation of potential upward momentum. In contrast, for the three outside down, the third bearish candle indicates potential downward momentum.
It’s common to enter trades at the open of the next candlestick, following the pattern, but waiting for a slight pullback or additional confirmation from another technical indicator (e.g., RSI or moving averages) is also a prudent strategy.
Stop Loss Placement
To potentially manage risk, traders often place stop losses at strategic points on the chart. In the case of a three outside up, it’s typical to place a stop loss just below the low of the engulfing (second) candle. This allows some breathing room but potentially protects against the risk of a reversal.
For the three outside down, a stop loss is commonly set just above the high of the engulfing candlestick.
Take Profit Strategy
Setting a take-profit target usually involves identifying potential resistance or support levels. For a three outside up, traders often target the next key resistance level. It’s also common to use a risk-reward ratio of 1:2 or higher, ensuring that the potential returns justify the risk taken.
In the case of a three outside down pattern, traders aim for the next support level as a potential area to take returns. Again, maintaining a favourable risk-reward ratio is crucial in preserving long-term trades.
How Traders Confirm Three Outside Candlestick Patterns
Confirming the three outside up and three outside down patterns is crucial for potentially avoiding false signals and increasing the reliability of your analysis. While the formation can signal a potential reversal, using additional tools to verify the move can help traders make more accurate decisions.
Here are a few ways traders typically confirm the pattern:
- Momentum Indicators: Traders often use momentum tools like the relative strength index, moving average convergence divergence, or stochastic oscillator to gauge whether the pattern aligns with market momentum. If these indicators show overbought or oversold conditions, it can confirm the strength of the signal.
- Volume Analysis: An increase in volume on the second and third candlesticks adds weight to the analysis, suggesting that more market participants are involved in the move. Higher volume often indicates stronger conviction behind the shift.
- Trendlines and Moving Averages: Many traders use trendlines or moving averages to confirm the pattern’s validity. For a three outside up, a breakout above a downtrend line or crossing above a key moving average reinforces the bullish signal. For a three outside down, a break below a trendline or drop under a moving average strengthens the bearish case.
Common Mistakes to Avoid
While these patterns can provide useful insights, there are common mistakes traders make when using them. Understanding them can help improve analysis and decision-making.
- Ignoring Volume: One of the key signs of a strong formation is the higher volume on the second and third candles. Without this, it may lack the strength needed to suggest a real market shift.
- Use in Isolation: Relying solely on the candlestick pattern without considering other indicators or market conditions often leads to misleading signals. It’s important to incorporate other technical tools to build a stronger case.
- Forcing the Pattern: Traders sometimes try to identify the pattern even when it doesn’t meet the criteria, leading to poor decisions. Both the engulfing and confirmation bars need to be clear and distinct for the formation to be valid.
- Overlooking Trend Context: They are more reliable when they occur after a clear uptrend or downtrend. Attempting to trade them in a range-bound market or against the prevailing trend can reduce their effectiveness.
The Bottom Line
The three outside patterns are valuable tools for identifying potential market reversals when combined with other technical analysis methods. In combination with sound risk management, these formations can offer traders a boost in their strategies.
To put what you’ve learned into practice across more than 700 markets, consider opening an FXOpen account. FXOpen offers several advanced trading platforms, low costs, and blazing-fast trade execution speeds designed to upgrade your trading experience.
FAQ
What Is the Pattern of Three Outside Candlesticks?
The three outside candlesticks pattern is a reversal formation made up of three consecutive candles. In the three outside up, a small bearish candle is followed by a larger bullish one that engulfs it. A third bullish candle confirms the upward move. The three outside down is the opposite, starting with a small bullish candlestick engulfed by a larger bearish one, with a final bearish candle confirming the potential downtrend.
What Happens After Three Outside Up?
After a three outside up, the market may experience a bullish reversal. The formation suggests that buyers are gaining momentum, and traders may see upward price movement following the confirmation of the third candle.
What Is the Success Rate of the Three Outside Up?
The success rate of the three outside up pattern varies depending on market conditions and timeframe. While it can be an effective reversal signal, it’s expected to be more reliable when combined with other indicators like volume or trendlines.
What Do Three Candlesticks Mean?
Three candlesticks refer to a specific pattern where three consecutive candles form a signal, often indicating potential reversals or trend confirmations in technical analysis.
What Is 3 Candlestick Strategy?
The 3 candlestick strategy involves identifying patterns like three outside up or three outside down, where 3 candles signal potential market reversals or continuations. It’s often used to analyse future price movements.
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GbpUsd- Strongly bullish on medium termAs you know from my previous TVC:DXY analyses, I anticipate a correction in the index, which should lead to a rise in major USD pairs.
Among all the USD pairs I've recently covered, FX:GBPUSD appears to be the most bullish.
Looking at the posted chart, after forming a bullish Pin Bar at its recent low in mid-January, GBP/USD began to reverse and climbed to 1.25, which was the initial target at that time.
A correction followed this first leg up. What stands out in this case is the strong bullish reversal candle that formed after Monday’s Asian open gap. Not only did it fill the gap (like in EUR/USD's case), but the pair also returned to the 1.25 resistance level.
This structure signals strong bullish momentum, and I expect GBP/USD to continue its ascent toward the next key resistance zone at 1.28.
In conclusion, my strategy remains to buy the dips.
Depending on the entry point, this setup offers a potential risk-to-reward ratio of over 1:3.
GBPUSD Analysis H1 Prediction for 05/02/2025📊 GBPUSD Smart Money Concept Analysis
🔹 Change of Character (ChoCH) and Break of Structure (BOS) indicate potential market direction shifts.
🔹 Price is currently rejecting a premium supply zone, signaling a possible short-term reversal.
🔹 Multiple Fair Value Gaps (FVGs) present below suggest liquidity voids that price may seek to fill.
🔹 Fibonacci retracement levels (0.382, 0.5, 0.618) align with potential demand zones for long positions.
📌 Bearish Scenario:
🔻 Price may reject from 1.24699 resistance and seek liquidity below.
🔻 Target zones:
✅ 1.24372 (0.236 FIB)
✅ 1.24014 (0.382 FIB)
✅ 1.23750 (0.5 FIB - key demand zone)
✅ 1.23437 (0.618 FIB - strong liquidity level)
📈 Bullish Confirmation Needed:
🔹 If price holds above 1.24699, a bullish continuation towards 1.24949 - 1.25100 may occur.
🔹 A strong breakout above 1.25303 would indicate further bullish momentum.
🚀 Trade Plan:
🔸 Short Setup: Look for bearish confirmations near resistance.
🔸 Long Setup: Wait for price to tap into demand zones around 1.23750 - 1.23437 for potential reversals.
#GBPUSD #ForexTrading #TechnicalAnalysis #SmartMoneyConcepts #PriceAction #LiquidityZones #BreakOfStructure
