Here I have GBP/USD on the 1 Hr chart!
Price dipped down into the Support Zone that was recently used in the beginning of July making its Low @ 1.2707!
Afterwards, price came right back up to make an Equal High @ 1.28404 forming quite a popular Reversal Pattern, the Cup & Handle!!
Now this PA formed the "Bowl" and after the Equal High, using the Fib Retracement Tool, we can see Price made a 61.8% Retracement beginning the formation of the "Handle"!
This Higher Low tells us that if this Fib Retracement holds, we could be seeing the end of this Downtrend and the beginning of an Uptrend to the Potential Range Target of 1.29992 - 1.30502!
- Bullish Divergence @ Support
- Violation of Structure from LL to HL
- RSI ABOVE 50