By Kenny Simon
The cup and handle pattern for the GBP/USD 1Hr chart as shown above it may not be something new as it is one of the oldest chart patterns you will find in technical analysis. In my opinion, it’s also one of the more reliable chart patterns and has been popping out in many other instruments Post –Brexit. However, these cup & handle patterns could also takes quite some time for the formation to complete until price reaches the mouth of the cup area.
The plan is; to either start entering a Long from now or to be more conservative and wait for price to ‘Breakout’ from the mouth of the cup at above the 1.3320 area. This pattern as of now even though at the 1Hr chart fits some waiting time form medium to long term as we would need to monitor the ‘ Geopolitics play’ that is impacting market conditions for now. However, the potential to the upside in terms of TP maybe quite rewarding as the number of potential pips could be the difference between the price at the mouth area (1.3340) and the price at the bottom of the cup(1.2855) which potentially is about 400 + pips.