Mikoxl.
Short

Shark 886 with a potential 5-0 pattern

FX:EURGBP   Euro Fx/British Pound
Previous post
In my previous post (https://www.tradingview.com/chart/EURGBP/qqQTuRtt-Shark-113-extension-with-a-potential-5-0-pattern/) about a smaller shark pattern and a 5-0 pattern completion, the pair confirmed that this smaller 5-0 pattern really just was a retracement pattern after a failed bearish pushes. This bear weakness was confirmed with a strong bullish move!

Reading the chart
Getting a bigger picture of the pair really shows the failed bearish attempts after point B. After a failed push (B) of only 113% extension of O to X, price almost immediately reversed to the other direction, breaking the secondary bearish trendline . The 88.6% retracement of O to B can bring some relief from the bullish pressure.

Prediction
After the extreme push was faded out, the real (or fair) price for a potential short showed itself at around 0.7359 at 88.6% retracement of O to X. If this level holds, there is a good chance that the pair will make a reciprocal AB=CD .

This pair tends to make double tops with RSI divergence after a big push up. Also for a better orientation I've put on the Bollingerband (21,2). So that is what I'm looking for to short this pair.

Setup
entry: 0.7359
minimum stoploss: 0.7439
target 1: 0.7232 (risk:reward 1:1.57)
target 2: 0.7115 (risk:reward 1:3.01)

Stop&revers at target 2
EURGBP did not make a correction like the EURUSD (a busted shark113 due to panic) as the GBP is still correcting. I think this pair is pending for a short as the 0.236 level @ 0.7304/5 holds, but the RSI (7) is showing bull weakness. If a 4H candlestick can close below the midline of Bollingerband and the 0.236 level, there is a good chance that this pair can start begin to correct.
Reply
If you took this trade, keep the faith! The reason why this shark has not falling like the EURUSD, is because the bulls tried to overcome the midline of the monthly bear channel. That's why I think this pair did not corrected as much as the EURUSD yet. This midline has been tested twice now but it should break by a final bear attempt.

snapshot
Reply
You can see this midline in another post I did 5 months ago:
EURGBP ready to consolidate?
Reply
Trade closed after seeing the bullish engulfing candlestick on monday. The monthly midline held the breakout. This pair could easily go to 0.7800
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snapshot
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Smart man.
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Damnit, what did I do? I should have followed my plan! :( Rookie mistake
Reply
ROOKIE MISTAKE!!!
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ROOKIE MISTAKE!!!!!!!!
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This could be the week EURGBP could hit target 1. Goodluck if you are still in this Shark!
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Target almost hit
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T1 hit. SL to breakeven :-)
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