GBP/USD Technical Analysis – Bullish Breakout from Falling Wedge (30-Min Chart)
Date: May 7, 2025
Pair: GBP/USD (British Pound / U.S. Dollar)
Timeframe: 30-Minutes
🔍 Chart Overview:
The chart displays a well-formed falling wedge pattern, a classic bullish reversal setup, followed by a confirmed breakout. Price action is currently consolidating above a key resistance-turned-support zone, presenting a favorable long opportunity.
🧩 Pattern Analysis:
✅ Falling Wedge (Bullish Reversal Pattern)
Definition: A falling wedge is characterized by converging downward-sloping trendlines, where both support and resistance lines slope downwards. This pattern signals weakening bearish momentum and often precedes a bullish reversal.
Breakout Direction: Upward
Breakout Confirmation: The breakout is confirmed as the price closes above the wedge’s upper boundary.
📌 Key Zones & Levels:
Support Zone:
Highlighted in blue, around 1.33300, this level has held multiple times as price found buying interest here.
Acts as a structural base for this bullish setup.
Resistance Zone (Broken):
Around 1.33650 – 1.33750, where multiple failed attempts were made before the eventual breakout.
This zone is now a key area of retest/support following the breakout.
Take Profit (TP):
1.33955 (initial breakout projection)
1.34158 (measured move/next resistance target based on the wedge height)
Stop Loss (SL):
Placed below the wedge and support structure at 1.33233, to protect against a false breakout.
🧠 Trade Rationale:
The falling wedge indicates exhaustion of selling pressure, and the breakout signals a potential trend reversal or at least a retracement.
A successful break and retest of the resistance area confirms buyer strength.
The risk-reward ratio is favorable, with limited downside below support and clear upside potential towards prior resistance levels.
📈 Projected Price Action:
Price breaks out from the wedge and enters consolidation just above the broken resistance.
A minor pullback or retest is expected (which offers a potential entry).
Price is likely to continue upward towards the first target (TP1: 1.33955) and potentially extend to (TP2: 1.34158).
A stop loss at 1.33233 helps mitigate risk in case the breakout fails.
📌 Conclusion:
This setup provides a clean bullish opportunity with strong technical confluence. The falling wedge breakout, supported by the retest of key structure, makes this a high-probability setup for short-term swing or intraday traders.
Date: May 7, 2025
Pair: GBP/USD (British Pound / U.S. Dollar)
Timeframe: 30-Minutes
🔍 Chart Overview:
The chart displays a well-formed falling wedge pattern, a classic bullish reversal setup, followed by a confirmed breakout. Price action is currently consolidating above a key resistance-turned-support zone, presenting a favorable long opportunity.
🧩 Pattern Analysis:
✅ Falling Wedge (Bullish Reversal Pattern)
Definition: A falling wedge is characterized by converging downward-sloping trendlines, where both support and resistance lines slope downwards. This pattern signals weakening bearish momentum and often precedes a bullish reversal.
Breakout Direction: Upward
Breakout Confirmation: The breakout is confirmed as the price closes above the wedge’s upper boundary.
📌 Key Zones & Levels:
Support Zone:
Highlighted in blue, around 1.33300, this level has held multiple times as price found buying interest here.
Acts as a structural base for this bullish setup.
Resistance Zone (Broken):
Around 1.33650 – 1.33750, where multiple failed attempts were made before the eventual breakout.
This zone is now a key area of retest/support following the breakout.
Take Profit (TP):
1.33955 (initial breakout projection)
1.34158 (measured move/next resistance target based on the wedge height)
Stop Loss (SL):
Placed below the wedge and support structure at 1.33233, to protect against a false breakout.
🧠 Trade Rationale:
The falling wedge indicates exhaustion of selling pressure, and the breakout signals a potential trend reversal or at least a retracement.
A successful break and retest of the resistance area confirms buyer strength.
The risk-reward ratio is favorable, with limited downside below support and clear upside potential towards prior resistance levels.
📈 Projected Price Action:
Price breaks out from the wedge and enters consolidation just above the broken resistance.
A minor pullback or retest is expected (which offers a potential entry).
Price is likely to continue upward towards the first target (TP1: 1.33955) and potentially extend to (TP2: 1.34158).
A stop loss at 1.33233 helps mitigate risk in case the breakout fails.
📌 Conclusion:
This setup provides a clean bullish opportunity with strong technical confluence. The falling wedge breakout, supported by the retest of key structure, makes this a high-probability setup for short-term swing or intraday traders.
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Penafian
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Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.