Key Observations
Trend Bias: Short-term bullish.
Buyers defended higher lows repeatedly, shown by the rising trendline underneath price.
Price is compressing into resistance, which often precedes a volatility expansion.
Structure Analysis
Resistance zone: 1.3440 – 1.3450
Immediate support: 1.3410 – 1.3400
Rising trendline support remains intact.
The grey projected box suggests expectation of an upside continuation move.
Bullish Scenario
If GBP/USD breaks and closes above:
y=1.3450
then momentum could extend toward:
1.3480
1.3500
Potentially 1.3520+
Volume and candle strength on breakout will matter.
Bearish Scenario
Failure to hold the ascending trendline may trigger:
Pullback to 1.3400
Then deeper retrace toward 1.3380 – 1.3360
A fake breakout is also possible because price is sitting directly beneath supply.
Market Psychology
This pattern reflects:
Sellers defending resistance
Buyers becoming increasingly aggressive at higher prices
Usually, whichever side wins this compression gets a sharp move.
Trading Idea
Aggressive bulls: wait for breakout candle above resistance.
Conservative traders: wait for retest confirmation after breakout.
Bears only gain control if structure breaks below the rising support line.
Trend Bias: Short-term bullish.
Buyers defended higher lows repeatedly, shown by the rising trendline underneath price.
Price is compressing into resistance, which often precedes a volatility expansion.
Structure Analysis
Resistance zone: 1.3440 – 1.3450
Immediate support: 1.3410 – 1.3400
Rising trendline support remains intact.
The grey projected box suggests expectation of an upside continuation move.
Bullish Scenario
If GBP/USD breaks and closes above:
y=1.3450
then momentum could extend toward:
1.3480
1.3500
Potentially 1.3520+
Volume and candle strength on breakout will matter.
Bearish Scenario
Failure to hold the ascending trendline may trigger:
Pullback to 1.3400
Then deeper retrace toward 1.3380 – 1.3360
A fake breakout is also possible because price is sitting directly beneath supply.
Market Psychology
This pattern reflects:
Sellers defending resistance
Buyers becoming increasingly aggressive at higher prices
Usually, whichever side wins this compression gets a sharp move.
Trading Idea
Aggressive bulls: wait for breakout candle above resistance.
Conservative traders: wait for retest confirmation after breakout.
Bears only gain control if structure breaks below the rising support line.
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.
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.