EURGBP-D1-Potential bullish shark at key area

FX:EURGBP   Euro Fx/British Pound
1486 14 37
The EUR is still weak and not ready for a rally against other pairs. We could expect a slow further decline, if this happens this pair could give us a good setup for a long entry at a key level.

At W1 chart we have:
- potential inverse head and shoulders pattern
- first convergence (higher high) confirmed by oscillator
- strond psycho number 0.7000


Here on D1 chart:

- Previous ending diagonal suggest this pair already bottomed
- Perfect bullish shark
- EW wave B (see below)


I will place buy limit orders near 0.7000.
SL and targets shown on chart.

Best regards.

Always do your own analysis before opening a trade.
Any respectful and constructive ideas are welcome (agree or disagree).
Follow me on Twitter for updates: @fxtrader2000

Comment: First target hit, moving sl to be
Comment: second target hit
Nice, looks like a great setup! I will adjust my last target on my short based on this and try to enter long now!

My short:
EUR/GBP: Short from broken trendline
Good entry!!, now you can look for longs using this setup. May be we have to wait some days because we could have some consolidation before a rally. Regards.
KVE PRO FullTimeTrader
I find the shark pattern a bit difficult to get a good entry. I was wondering: do you use the 5-0 pattern rules from the Scott Carney book to get your C point? Or is there newer literature available specifically for the shark pattern?

I have found sources with different rules, for instance one stating that it should be entered at 0.886 with stops below 1.13 which gives crappy R/R...
Yours is much better but I'm a bit worried about a 1.13 0X extension for the shark C completion point.

We do have good support however as you stated from the 0.7000 level and possible H&S (which could mean we missed our entry point seeing the recent pullback...), possibly also from a monthly "up" trendline a bit lower down imo and maybe even from a Quasimodo pattern (11 March low acting as Quasimodo support).

Taking all that into consideration I think your entry is possibly the best compromise!

As for targets, based on a 5-0 I'm aiming for the 50% ret. of BC, in case Quasimodo acts and we don't go below the most recent low we could see an ext. much further up, possibly to 0.7600 where an AB=CD pattern might end. Purely hypothetical of course... ;-)

This is what I have so far, I might put my first entry a bit higher above the 0.7000 as yours is, I might have to give it a nights sleep...:
Hello, i trade harmonic patterns in confluence with elliot waves. This way gives me more specific stop loss and targets. Right now i dont trade the 5-0 pattern, i found another way of trading similar structures using EW.
Talking about the shark please refer to my EW count i show above. I place the SL some pips below 0.6927 because if this happens the EW count is invalid and the shark has more probabilities to fail. I agree the 1.13 fib extension is too far. The SL some pips below 0.6927 is better.
For targets, as you can see on my EW count i expect a possible ABC pattern forming here, so the long term targets are above 0.7500. I just place three targets to take partial profits on the way and be more conservative.

KVE PRO FullTimeTrader
Tnx alot for your reply! EW is next on my list to learn!
Agree, an ab=cd is forming as well and target to completed at 0.70000 then will start rise.
It might also rise to 0.79300 due to a potential bat is forming as well in daily chart. :)
Hello; I'm not so good in patterns but must the last ending point not be beneath/under the startingpoint to be a shark?Otherwise great job..Greetings ,Johan
FullTimeTrader johan.verm
The last point could be in the range 0.8860 - 1.13. This time i prefer the 0.700 because its the 0.8860 fib and round number 0.7000 is a reaction level. Im using also my Elliot Wave count to choose a more specific entry point. Regards.
johan.verm FullTimeTrader
Thanks.Have a nice tradingday..
Adjusted levels for targets:
dinesh26 FullTimeTrader
Can I still get in on this trade? or is it not worth the R/R at this point? you have great analysis btw! keep up the great work.
Thank you.
EURGBP are going to rise!!!
work great
Yes!, at that time was difficult to think the EUR will recover. Regards.
BLKS FullTimeTrader
ya, gbp is falling as well.
Ideas Scripts Chart
United States
United Kingdom
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out