GBPUSD and other GBP Pairs with Reversal Setups
Very nice market structure patterns with the GBP pairs this week. Market structure tells us that all assets move in certain waves, and these waves repeat in cycles. Certain currencies have their time for a trend and the GBP seems to be primed for its trend.
GBPUSD had a nice downtrend with multiple lower highs. We hit support at 1.23, and from there created a head and shoulders pattern. The entry was the break out candle. Notice how price retraced before forming a very bullish engulfing candle. In this market environment, we are seeing many more retests on breakouts before continuing the trend. Some retests occur very deep. I think this has to do with the fact there are many new traders now and market makers and experienced institutional traders are shaking them out. Be careful. Anyways, I like to target 1.2750.
EURGBP same set up but just the opposite. AN uptrend turning into a downtrend. Head and Shoulders pattern, and notice the retest. We are seeing sellers step in. Two ways to enter. First, you could have entered on the break down or the retest. The wicks on the 4 hour candles at the retest zone told use sellers were stepping in. The second entry is yet to play out: enter on a break lower to create the lower low. This is a close below 0.8975. Remember, it is this lower low which confirms the lower high and the retest. This gives us a higher probability of success. I would target the flip zone at 0.89.
The next two charts are my favourite. GBPAUD looks good on both the 4 hour and daily charts. Nice prolonged downtrend and we are now exhausting. Or so it appears. We have ranged, and you can say have formed a double bottom/ ugly head and shoulders pattern with the higher low to be confirmed with a break above 1.8110. Await for this break! 1.8450 is the target.
My second favourite. Not much needs to be said. Nice head and shoulders pattern here, and now we await the break out above 1.1850. Really nice. Target the 1.20 zone.
Will add GBPCAD as a bonus, but to tell you the truth, the other pairs mentioned have a nicer market structure pattern and chart. I don't really like the downtrend on this one, and hence, the double bottom is not as strong. Regardless, we have broken above the neckline and are now retesting the breakout zone. Once again, you can either enter here or await for new recent highs with a break above 1.71.
I posted GBPJPY last week and just want to do a follow up. We are approaching our target zone. Nice market structure and holding the higher low swings. As long as market structure remains, we stay long.
GBPUSD had a nice downtrend with multiple lower highs. We hit support at 1.23, and from there created a head and shoulders pattern. The entry was the break out candle. Notice how price retraced before forming a very bullish engulfing candle. In this market environment, we are seeing many more retests on breakouts before continuing the trend. Some retests occur very deep. I think this has to do with the fact there are many new traders now and market makers and experienced institutional traders are shaking them out. Be careful. Anyways, I like to target 1.2750.
EURGBP same set up but just the opposite. AN uptrend turning into a downtrend. Head and Shoulders pattern, and notice the retest. We are seeing sellers step in. Two ways to enter. First, you could have entered on the break down or the retest. The wicks on the 4 hour candles at the retest zone told use sellers were stepping in. The second entry is yet to play out: enter on a break lower to create the lower low. This is a close below 0.8975. Remember, it is this lower low which confirms the lower high and the retest. This gives us a higher probability of success. I would target the flip zone at 0.89.
The next two charts are my favourite. GBPAUD looks good on both the 4 hour and daily charts. Nice prolonged downtrend and we are now exhausting. Or so it appears. We have ranged, and you can say have formed a double bottom/ ugly head and shoulders pattern with the higher low to be confirmed with a break above 1.8110. Await for this break! 1.8450 is the target.
My second favourite. Not much needs to be said. Nice head and shoulders pattern here, and now we await the break out above 1.1850. Really nice. Target the 1.20 zone.
Will add GBPCAD as a bonus, but to tell you the truth, the other pairs mentioned have a nicer market structure pattern and chart. I don't really like the downtrend on this one, and hence, the double bottom is not as strong. Regardless, we have broken above the neckline and are now retesting the breakout zone. Once again, you can either enter here or await for new recent highs with a break above 1.71.
I posted GBPJPY last week and just want to do a follow up. We are approaching our target zone. Nice market structure and holding the higher low swings. As long as market structure remains, we stay long.