Ultra-Detailed GBP/USD (1H) Chart Analysis
1️⃣ Chart Overview:
The chart shows GBP/USD on the 1-hour timeframe.
A Rising Wedge pattern had formed — a classic technical structure suggesting bullish exhaustion.
Price broke down from the wedge but found strong demand at a key horizontal support zone.
2️⃣ Formation of the Rising Wedge:
Rising Wedge Characteristics:
Series of higher highs and higher lows, but within a converging structure.
Indicates slowing bullish momentum — buyers are pushing higher, but with less strength each time.
The wedge is well-respected with multiple touches on both the upper and lower boundaries, giving it high validity.
3️⃣ Breakout and Reaction:
Bearish Breakdown:
Price broke below the lower trendline of the wedge — a bearish signal.
Immediate Reaction:
Instead of a steep fall, price stabilized at a nearby major support level (marked with horizontal blue).
Buyers defended this zone fiercely, suggesting it is a strong accumulation area.
4️⃣ Current Market Structure:
After testing support, price created higher lows again.
This signals a possible shift from bearish pressure back to bullish control, at least temporarily.
A new mini-range is forming between the support zone and the resistance line.
5️⃣ Trade Plan Breakdown:
Entry Take Profit (TP) Stop Loss (SL)
Plan Buy near support confirmation TP at 1.33847 SL at 1.32652
Entry Trigger:
Ideally after bullish confirmation patterns like bullish engulfing candle, pin bar, or a break of minor intraday resistance.
Take Profit:
The TP is aligned with a measured move projection.
Also corresponds to a previous minor supply zone where selling pressure could reappear.
Stop Loss:
Placed safely below key support to avoid noise but protect capital in case of trend reversal.
6️⃣ Deeper Technical Confluences:
Broken Wedge + Retest: After a structure break, retesting nearby support often triggers a counter-trend move.
Support and Resistance Flip: Old support acting again gives extra confidence.
Fibonacci Support: (optional addition — often rising wedges break and retrace to the 38.2%-61.8% Fibonacci zones).
Order Block: Possible institutional buying around support.
7️⃣ Market Psychology Insight:
After wedge break, sellers expected free fall but found unexpected strong buying.
Short-sellers may start covering (closing positions) — fueling more upside (short squeeze effect).
Retail traders might hesitate due to the previous breakdown, but smart money steps in early.
8️⃣ Risk Management:
This setup has an attractive Reward/Risk ratio (~2:1 or higher).
Always risk a small percentage of account equity (example: 1%-2% per trade).
Be ready to adjust stop loss to break even if the price reaches halfway to the target.
9️⃣ Potential Scenarios:
Scenario Expectation
Bullish Breakout If buyers dominate, clean move to 1.33847
Range Continuation Some consolidation around support/resistance first
Bearish Failure If support is broken strongly, setup invalidates
🔥 Final TradingView Idea Summary:
Bias: Short-Term Bullish
Pattern: Rising Wedge Breakdown ➔ Support Bounce
Action Plan: Buying pullbacks into support, targeting resistance.
Key Levels: Support 1.32652 | Target 1.33847
Risk Management: Strict stop placement with 2R+ potential profit.
1️⃣ Chart Overview:
The chart shows GBP/USD on the 1-hour timeframe.
A Rising Wedge pattern had formed — a classic technical structure suggesting bullish exhaustion.
Price broke down from the wedge but found strong demand at a key horizontal support zone.
2️⃣ Formation of the Rising Wedge:
Rising Wedge Characteristics:
Series of higher highs and higher lows, but within a converging structure.
Indicates slowing bullish momentum — buyers are pushing higher, but with less strength each time.
The wedge is well-respected with multiple touches on both the upper and lower boundaries, giving it high validity.
3️⃣ Breakout and Reaction:
Bearish Breakdown:
Price broke below the lower trendline of the wedge — a bearish signal.
Immediate Reaction:
Instead of a steep fall, price stabilized at a nearby major support level (marked with horizontal blue).
Buyers defended this zone fiercely, suggesting it is a strong accumulation area.
4️⃣ Current Market Structure:
After testing support, price created higher lows again.
This signals a possible shift from bearish pressure back to bullish control, at least temporarily.
A new mini-range is forming between the support zone and the resistance line.
5️⃣ Trade Plan Breakdown:
Entry Take Profit (TP) Stop Loss (SL)
Plan Buy near support confirmation TP at 1.33847 SL at 1.32652
Entry Trigger:
Ideally after bullish confirmation patterns like bullish engulfing candle, pin bar, or a break of minor intraday resistance.
Take Profit:
The TP is aligned with a measured move projection.
Also corresponds to a previous minor supply zone where selling pressure could reappear.
Stop Loss:
Placed safely below key support to avoid noise but protect capital in case of trend reversal.
6️⃣ Deeper Technical Confluences:
Broken Wedge + Retest: After a structure break, retesting nearby support often triggers a counter-trend move.
Support and Resistance Flip: Old support acting again gives extra confidence.
Fibonacci Support: (optional addition — often rising wedges break and retrace to the 38.2%-61.8% Fibonacci zones).
Order Block: Possible institutional buying around support.
7️⃣ Market Psychology Insight:
After wedge break, sellers expected free fall but found unexpected strong buying.
Short-sellers may start covering (closing positions) — fueling more upside (short squeeze effect).
Retail traders might hesitate due to the previous breakdown, but smart money steps in early.
8️⃣ Risk Management:
This setup has an attractive Reward/Risk ratio (~2:1 or higher).
Always risk a small percentage of account equity (example: 1%-2% per trade).
Be ready to adjust stop loss to break even if the price reaches halfway to the target.
9️⃣ Potential Scenarios:
Scenario Expectation
Bullish Breakout If buyers dominate, clean move to 1.33847
Range Continuation Some consolidation around support/resistance first
Bearish Failure If support is broken strongly, setup invalidates
🔥 Final TradingView Idea Summary:
Bias: Short-Term Bullish
Pattern: Rising Wedge Breakdown ➔ Support Bounce
Action Plan: Buying pullbacks into support, targeting resistance.
Key Levels: Support 1.32652 | Target 1.33847
Risk Management: Strict stop placement with 2R+ potential profit.
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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.