GBP/USD30 Mins Frame
🧠 Technical Overview:
Price is currently testing a strong resistance zone after a gradual upward movement, with signs of a potential bearish reversal.
A rising wedge pattern is forming — typically a bearish reversal pattern, especially if broken to the downside.
🧩 Key Technical Elements:
1. Supply Zone:
Defined between 1.3675 and 1.3717 — a previously strong resistance area.
Price is currently facing rejection within this zone, showing weakening bullish momentum.
2. Entry Point:
Sell at 1.36560, triggered by rejection from the resistance zone and a potential breakdown below the ascending support (blue line).
3. Stop Loss:
1.37177, placed above the supply zone — a logical level that invalidates the bearish setup if reached.
4. Targets:
First Target: 1.35602 – a clear previous support level and logical profit-taking zone.
Second Target: 1.34207 – a stronger, more significant support zone, likely to be tested if bearish momentum continues.
📉 Expected Price Action:
The chart shows a weak rising wedge pattern, indicating potential buyer exhaustion.
A break below the ascending trendline (blue) may trigger strong downside movement.
The expected move is illustrated with the red arrow on the chart, indicating a bearish trajectory.
🔥 Risk-to-Reward Ratio (R:R):
First Target:
Potential Reward: ~95 pips
Risk (SL): ~61 pips
→ R:R ≈ 1.56:1
Second Target:
Potential Reward: ~235 pips
→ R:R ≈ 3.85:1
✅ Very favorable, especially toward the second target.
✅ Conclusion:
The short setup is technically valid and supported by price structure and resistance confirmation.
The supply zone has proven strong, and price is struggling to break above it.
A solid trade opportunity for short- to medium-term traders with clearly defined risk and reward.
