We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bullish
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • What is your #tradingstyle? Take the quiz and let us know: https://t.co/LPBOcS0Vtd https://t.co/l6FvtcADEH
  • Asia’s vast and growing importance to the world economy is not yet matched by the presence of a currency trading center to rival the established order. Get your update on market drivers in Asia from @DavidCottleFX here: https://t.co/E2hqoRdO7q https://t.co/dnrAMFK4U2
  • Geopolitical developments send #oil prices soaring or falling. Get your market update from @MartinSEssex here:https://t.co/XVXLyG8vjq #OOTT https://t.co/RMk5Eb5fLU
  • Negative yielding government bonds – What are they telling us? Find out from @nickcawley1 here: https://t.co/F6JuhmrvPT https://t.co/KdpSjQSJ8F
  • #Euro area stocks may be preparing to break the four-month uptrend built around hopes for a US-China trade deal and an orderly #Brexit outcome. Get your market update from @IlyaSpivak here: https://t.co/ujlCJiXLvh https://t.co/INdFtsrTTF
  • What is the top market moving theme for the coming week? I disagree with the majority. '$EURUSD, $GBPUSD and $AUDUSD Top Volatility Candidates With #Fed, #Election, #TradeWar' https://www.dailyfx.com/forex/video/daily_news_report/2019/12/07/EURUSD-GBPUSD-and-AUDUSD-Top-Volatility-Candidates-On-Fed-Election-Trade-War.html?CHID=9&QPID=917719 https://t.co/Q1dbZVN5Us
  • The Australian Dollar was focused on its home country in the past week, but that is likely to change sharply in the days ahead with major global risk events coming up. Get your $AUDUSD market update from @DavidCottleFX here: https://t.co/yZz3hCyVMx https://t.co/1xw1JHwd7l
  • The #Euro broke chart resistance, threatening to challenge the bounds of its longer -term downtrend against the $USD. Bulls may find it premature to celebrate however. Get your market update from @IlyaSpivak here: https://t.co/VfR13llYbW https://t.co/LiWTvIygxc
  • The $USD appears to be stalling against the Singapore Dollar, Malaysian Ringgit, Indonesian Rupiah and Philippine Peso, but technical analysis may still favor USD strength. Get your market update from @ddubrovskyFX here:https://t.co/AZp98MoXKo https://t.co/jgZMUFVGJB
  • The Indian Rupee soared after the Reserve Bank of India surprised with a rate hold. $USDINR may climb as support reinstates the uptrend ahead of Indian CPI and global trade tensions. Get your market update from @ddubrovskyFX here:https://t.co/QEOabsDfMn https://t.co/rqn8Zjrvkv
GBP/USD Forming Triple Bottom Reversal Pattern

GBP/USD Forming Triple Bottom Reversal Pattern

2017-03-27 16:26:00
Oliver Morrison, Analyst
Share:

Position: Long GBP/USD

Entry: 1.2737

Initial Target: 1.3445 (+708-pips, September 6 high)

Stop: 1.2415 (-322-pips, trail below daily 13-EMA)

Reward/Risk Ratio: 708/333 = +2.20

GBPUSD looks to be forming a ‘triple bottom’ reversal pattern – a signal that the pair’s long prior downward trend is about to reverse, possibly reaching up to the previous reaction high.

Three bottoms can be better than one -- this pattern is relatively rare and is usually an extension to a double top. When it does occur it is usually formed at the end of a long trend. The triple bottom formation appears in the GBPUSD’s daily and weekly charts.

Chart 1: GBP/USD Weekly Timeframe (December 2015 to March 2017)

GBP/USD Forming Triple Bottom Reversal Pattern

Looking at the weekly chart, the triple bottom would be confirmed if the pair breaks the ‘base’ around 1.2737 – the high of November 28 last year. If that’s broken, it will signal a bullish move to the first swing target around 1.3352, the high of August 29. If that’s cleared, an eventual return to pre-Brexit vote levels wouldn’t be so far-fetched. A further break above the September 6 high of 1.3445 could ultimately instigate a return to pre-referendum levels above 1.4500.

Chart 2: GBP/USD Daily Timeframe (June 2016 to March 2017)

GBP/USD Forming Triple Bottom Reversal Pattern

--- Written by Oliver Morrison, Analyst

To contact Oliver, email him at oliver.morrison@ig.com

Don't trade FX but want to learn more? Read the DailyFX Trading Guides

If you’re looking for ideas more short-term in nature, please check out our IG Client Sentiment Data

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.