GBPAUD has formed an Cup and handle pattern on its daily chart.
The price is trading above the Breakout: 1.82760.
ST: 1.81739
Targets:
62%: 1.89300
79%: 1.91032
100%: 1.93353
127%: 1.96154
162%: 1.99802
William J. 0’Neil developed and popularized in the 1980s the
Cup and Handle pattern.
Cup and Handle patterns are continuation patterns, and they usually form in bullish trends.
They also form in all markets and in all time-frames.
The “Cup” formation is developed as consolidation phase during price rallies from the round bottom formation over multiple weeks to months. The “Handle” part forms due to a price correction after “Cup" formation and before a clear breakout to the upside.
Cup and Handle pattern structure show the momentum pause after reaching a new high in a U-Shape form, followed by another attempt to breakout. When this breakout from the rim of the cup fails it starts to fall back to build the 'Handle' structure. Usually, the handle structures are small, and the handle depth should not exceed more than 50% of cup depth.
Entrie
When the pattern breaks out above the rim of the cup, a long trade is entered above the high of the breakout bar.
Targets: 62-79%, 127-162% Cup height
Stop
A stop should be placed
below the middle of the
handle level.
The price is trading above the Breakout: 1.82760.
ST: 1.81739
Targets:
62%: 1.89300
79%: 1.91032
100%: 1.93353
127%: 1.96154
162%: 1.99802
William J. 0’Neil developed and popularized in the 1980s the
Cup and Handle pattern.
Cup and Handle patterns are continuation patterns, and they usually form in bullish trends.
They also form in all markets and in all time-frames.
The “Cup” formation is developed as consolidation phase during price rallies from the round bottom formation over multiple weeks to months. The “Handle” part forms due to a price correction after “Cup" formation and before a clear breakout to the upside.
Cup and Handle pattern structure show the momentum pause after reaching a new high in a U-Shape form, followed by another attempt to breakout. When this breakout from the rim of the cup fails it starts to fall back to build the 'Handle' structure. Usually, the handle structures are small, and the handle depth should not exceed more than 50% of cup depth.
Entrie
When the pattern breaks out above the rim of the cup, a long trade is entered above the high of the breakout bar.
Targets: 62-79%, 127-162% Cup height
Stop
A stop should be placed
below the middle of the
handle level.
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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.