In this episode we are looking at a bearish bat on the euro-pound! Price has consolidated a little between the A, B and C coordinates, giving great shape to the movement. The D point is forming in an area where price has previously bounced- if the weekly chart is anything to go by, there has been a lot of action around this level.
As always, I'm drawing the chart up very early; there may be economic data released that alters the direction of the final CD wave before it reaches the D point, but I will keep an eye on this pair until then.
Bat Ratios
B: 0.382 - 0.50
C: 0.382 - 0.886
D: 1.618 - 2.618
xD: 0.886
As always, I'm drawing the chart up very early; there may be economic data released that alters the direction of the final CD wave before it reaches the D point, but I will keep an eye on this pair until then.
Bat Ratios
B: 0.382 - 0.50
C: 0.382 - 0.886
D: 1.618 - 2.618
xD: 0.886
Comment:
After the rally on the weekly chart, price peaked at 0.915 before it retraced and began to consolidate. If you take your fib took, the 0.886 D point for the bat lands around the same level as the 50% retracement level of the whole price swing. It is just as likely that price will drop before reaching this level, but, if it does, I will be entering a huge short position!
