In my previous post (https://www.tradingview.com/chart/EURGBP/qqQTuRtt-Shark-113-extension-with-a-potential-5-0-pattern/) about a smaller pattern and a pattern completion, the pair confirmed that this smaller pattern really just was a retracement pattern after a failed pushes. This bear weakness was confirmed with a strong move!
Reading the chart
Getting a bigger picture of the pair really shows the failed 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 . The of O to B can bring some relief from the pressure.
After the extreme push was faded out, the real (or fair) price for a potential short showed itself at around 0.7359 at of O to X. If this level holds, there is a good chance that the pair will make a reciprocal .
This pair tends to make double tops with 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.
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