GBP/USD Technical Analysis – Bullish Breakout from Falling Wedge

GBP/USD Technical Analysis – Bullish Breakout from Falling Wedge (30-Min Chart)
Date: May 7, 2025
Pair: GBP/USD (British Pound / U.S. Dollar)
Timeframe: 30-Minutes

🔍 Chart Overview:
The chart displays a well-formed falling wedge pattern, a classic bullish reversal setup, followed by a confirmed breakout. Price action is currently consolidating above a key resistance-turned-support zone, presenting a favorable long opportunity.

🧩 Pattern Analysis:
✅ Falling Wedge (Bullish Reversal Pattern)
Definition: A falling wedge is characterized by converging downward-sloping trendlines, where both support and resistance lines slope downwards. This pattern signals weakening bearish momentum and often precedes a bullish reversal.

Breakout Direction: Upward

Breakout Confirmation: The breakout is confirmed as the price closes above the wedge’s upper boundary.

📌 Key Zones & Levels:
Support Zone:

Highlighted in blue, around 1.33300, this level has held multiple times as price found buying interest here.

Acts as a structural base for this bullish setup.

Resistance Zone (Broken):

Around 1.33650 – 1.33750, where multiple failed attempts were made before the eventual breakout.

This zone is now a key area of retest/support following the breakout.

Take Profit (TP):

1.33955 (initial breakout projection)

1.34158 (measured move/next resistance target based on the wedge height)

Stop Loss (SL):

Placed below the wedge and support structure at 1.33233, to protect against a false breakout.

🧠 Trade Rationale:
The falling wedge indicates exhaustion of selling pressure, and the breakout signals a potential trend reversal or at least a retracement.

A successful break and retest of the resistance area confirms buyer strength.

The risk-reward ratio is favorable, with limited downside below support and clear upside potential towards prior resistance levels.

📈 Projected Price Action:
Price breaks out from the wedge and enters consolidation just above the broken resistance.

A minor pullback or retest is expected (which offers a potential entry).

Price is likely to continue upward towards the first target (TP1: 1.33955) and potentially extend to (TP2: 1.34158).

A stop loss at 1.33233 helps mitigate risk in case the breakout fails.

📌 Conclusion:
This setup provides a clean bullish opportunity with strong technical confluence. The falling wedge breakout, supported by the retest of key structure, makes this a high-probability setup for short-term swing or intraday traders.