GBP/USD – Triple Bottom Reversal & Breakout Setup
Timeframe: 30-Minute Chart
Published: May 5, 2025
Pair: GBP/USD – British Pound / U.S. Dollar
By: RoyalFxSignal
🧠 Chart Context & Market Structure
The GBP/USD pair recently experienced a prolonged downtrend, characterized by lower highs and lower lows. However, the chart now shows clear signs of bullish reversal, led by a Triple Bottom formation — a high-probability reversal pattern signaling the potential end of selling pressure and the start of upward momentum.
🧩 Pattern Analysis: Triple Bottom Formation
✅ Bottom 1, Bottom 2, Bottom 3
Price formed three consecutive lows around the 1.3264–1.3270 zone.
Each dip into this support zone was followed by a sharp bullish rejection, showing clear buying interest and defensive behavior by bulls.
This triple test of support signals strong accumulation and a likely exhaustion of bearish pressure.
✅ Resistance Zone
Between each bottom, price action faced resistance near 1.3345–1.3355, creating a horizontal resistance zone.
This level was tested multiple times and acted as a key decision area for breakout confirmation.
🔁 Breakout Confirmation & Retest
Eventually, the price broke above the resistance zone, confirming the Triple Bottom reversal pattern.
After the breakout, the market pulled back to retest the former resistance zone, which is now acting as new support (a concept known as "resistance-turned-support").
This retest offers a textbook long entry opportunity, backed by structure and momentum.
📌 Key Price Levels
Level Type Description
1.3264 SL Strong support and pattern invalidation zone
1.3345 – 1.3355 Entry Zone Breakout and retest region
1.33893 Target Next key resistance / measured move projection
💼 Trading Setup
Trade Element Value
Entry Near 1.3350 after confirmed breakout & retest
Stop Loss Below 1.3264 to protect against false breakout
Take Profit (TP) 1.33893 – based on recent structural highs
This results in a favorable Risk-to-Reward Ratio (RRR) and aligns with market structure, increasing the probability of success.
📈 Market Sentiment & Trade Rationale
The triple bottom signifies strong buyer dominance at the support level, rejecting lower prices consistently.
The bullish breakout above resistance is backed by volume and structure, adding confidence to the trade.
The breakout retest provides a low-risk high-reward entry point, especially in early trend reversal phases.
This trade idea is technically sound, supported by pattern structure, and provides clear invalidation (SL) and profit target (TP) points.
⚠️ Risk Management Note
Only risk 1–2% of account capital per trade.
Avoid entering late after breakout extension; wait for pullback confirmation.
Monitor fundamentals (e.g., UK or US economic data) which may impact GBP/USD volatility.
✅ Conclusion
This GBP/USD chart displays a well-formed Triple Bottom pattern, followed by a clean breakout and retest — setting up a high-quality bullish trade. The setup is supported by price action, clear support/resistance zones, and risk-managed entry.
This is a strong example of how to trade reversals using classic chart patterns and market structure confirmation.
Timeframe: 30-Minute Chart
Published: May 5, 2025
Pair: GBP/USD – British Pound / U.S. Dollar
By: RoyalFxSignal
🧠 Chart Context & Market Structure
The GBP/USD pair recently experienced a prolonged downtrend, characterized by lower highs and lower lows. However, the chart now shows clear signs of bullish reversal, led by a Triple Bottom formation — a high-probability reversal pattern signaling the potential end of selling pressure and the start of upward momentum.
🧩 Pattern Analysis: Triple Bottom Formation
✅ Bottom 1, Bottom 2, Bottom 3
Price formed three consecutive lows around the 1.3264–1.3270 zone.
Each dip into this support zone was followed by a sharp bullish rejection, showing clear buying interest and defensive behavior by bulls.
This triple test of support signals strong accumulation and a likely exhaustion of bearish pressure.
✅ Resistance Zone
Between each bottom, price action faced resistance near 1.3345–1.3355, creating a horizontal resistance zone.
This level was tested multiple times and acted as a key decision area for breakout confirmation.
🔁 Breakout Confirmation & Retest
Eventually, the price broke above the resistance zone, confirming the Triple Bottom reversal pattern.
After the breakout, the market pulled back to retest the former resistance zone, which is now acting as new support (a concept known as "resistance-turned-support").
This retest offers a textbook long entry opportunity, backed by structure and momentum.
📌 Key Price Levels
Level Type Description
1.3264 SL Strong support and pattern invalidation zone
1.3345 – 1.3355 Entry Zone Breakout and retest region
1.33893 Target Next key resistance / measured move projection
💼 Trading Setup
Trade Element Value
Entry Near 1.3350 after confirmed breakout & retest
Stop Loss Below 1.3264 to protect against false breakout
Take Profit (TP) 1.33893 – based on recent structural highs
This results in a favorable Risk-to-Reward Ratio (RRR) and aligns with market structure, increasing the probability of success.
📈 Market Sentiment & Trade Rationale
The triple bottom signifies strong buyer dominance at the support level, rejecting lower prices consistently.
The bullish breakout above resistance is backed by volume and structure, adding confidence to the trade.
The breakout retest provides a low-risk high-reward entry point, especially in early trend reversal phases.
This trade idea is technically sound, supported by pattern structure, and provides clear invalidation (SL) and profit target (TP) points.
⚠️ Risk Management Note
Only risk 1–2% of account capital per trade.
Avoid entering late after breakout extension; wait for pullback confirmation.
Monitor fundamentals (e.g., UK or US economic data) which may impact GBP/USD volatility.
✅ Conclusion
This GBP/USD chart displays a well-formed Triple Bottom pattern, followed by a clean breakout and retest — setting up a high-quality bullish trade. The setup is supported by price action, clear support/resistance zones, and risk-managed entry.
This is a strong example of how to trade reversals using classic chart patterns and market structure confirmation.
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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.