More Upside Action For GBP/USD
DAYTRADE PROFIT | May 11, 2015 01:47PM ET
GBP/USD pattern show to us cup with handle pattern is forming a bullish pattern. It could reach new high level at 1.5780-1.5840 and even to 1.5970. It is likely to find resistance at the level of 1.5680 and 1.5720.
The short-term outlook remains bullish because GBP/USD is still trading above the black strap located in 1.52 area support level, in the bigger picture, price actions from 1.3503 (2009 low) are treated as consolidations long term down trend from 2.1161 and should have completed at 1.7190. Fall from there should now target a new low below 1.3503 (2009 low). Subsequent price actions could turn.
A cup with handle consists of two approximately rounded bottoms, the low of the cup must be less than 50% of the previous price movement and the low of the handle must be less than 50% of the cup height. The pattern's highs should be aligned along a horizontal resistance line. The exit is confirmed when price breaks through the resistance line, and in 74% of cases, it is followed by a throwback. It appears most often after a rise in forex prices.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.