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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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.
Related publications
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.