GBP/USD DCA - Inverted head and Shoulders
Asset: GBP/USD (British Pound/US Dollar)
Exchange: Forex Market
Introduction:
Welcome to our daily technical analysis. Our focus today is the GBP/USD pair on the Forex Market. The daily chart shows an Inverted Head and Shoulders pattern after a downward trend, suggesting a bullish reversal.
Inverted Head and Shoulders Pattern:
The Inverted Head and Shoulders pattern is a classic chart pattern that traditionally signals a bullish reversal. It's characterized by three troughs, with the middle one (the head) being the deepest and the two on the sides (the shoulders) being shallower and roughly equal in depth.
Analysis:
After a clear downward trend, GBP/USD has formed an Inverted Head and Shoulders pattern in its consolidation phase. The pattern exhibits good symmetry, with the right shoulder extending in the form of a rectangle. The price is currently above the 200 EMA, further suggesting a bullish environment.
Interestingly, there has already been one attempt at a breakout, but it resulted in a throwback. Now, as we see the second attempt at a breakout, this setup might present a potentially profitable long entry opportunity.
If the breakout holds, the price target is set at 1.141628, indicating a potential upside of approximately 14.08%.
Conclusion:
GBP/USD's daily chart reveals an interesting setup in the form of an Inverted Head and Shoulders pattern, suggesting a potential bullish reversal. This setup could present a profitable long trading opportunity.
This analysis should be used as part of your overall market research and risk management strategy, and not as direct trading advice. Always remember, trading carries risk, and past performance is not indicative of future results.
If you found this analysis helpful, please consider liking, sharing, and following for more insights. Wishing you profitable trading!
Best regards,
Karim Subhieh
Exchange: Forex Market
Introduction:
Welcome to our daily technical analysis. Our focus today is the GBP/USD pair on the Forex Market. The daily chart shows an Inverted Head and Shoulders pattern after a downward trend, suggesting a bullish reversal.
Inverted Head and Shoulders Pattern:
The Inverted Head and Shoulders pattern is a classic chart pattern that traditionally signals a bullish reversal. It's characterized by three troughs, with the middle one (the head) being the deepest and the two on the sides (the shoulders) being shallower and roughly equal in depth.
Analysis:
After a clear downward trend, GBP/USD has formed an Inverted Head and Shoulders pattern in its consolidation phase. The pattern exhibits good symmetry, with the right shoulder extending in the form of a rectangle. The price is currently above the 200 EMA, further suggesting a bullish environment.
Interestingly, there has already been one attempt at a breakout, but it resulted in a throwback. Now, as we see the second attempt at a breakout, this setup might present a potentially profitable long entry opportunity.
If the breakout holds, the price target is set at 1.141628, indicating a potential upside of approximately 14.08%.
Conclusion:
GBP/USD's daily chart reveals an interesting setup in the form of an Inverted Head and Shoulders pattern, suggesting a potential bullish reversal. This setup could present a profitable long trading opportunity.
This analysis should be used as part of your overall market research and risk management strategy, and not as direct trading advice. Always remember, trading carries risk, and past performance is not indicative of future results.
If you found this analysis helpful, please consider liking, sharing, and following for more insights. Wishing you profitable trading!
Best regards,
Karim Subhieh
KSC