GBPJPY AB Swing of Potential Bearish Butterfly/Gartley Pattern

Long

British Pound / Japanese Yen (FX:GBPJPY)

FX:GBPJPY British Pound / Japanese Yen

gbpjpy forex technical harmonicpatterns fibonacci

Looking at an upside move to weekly resistance (Weekly R1) which is also 78.6 Fib retracement level. Purely Technical based off the Bullish Cypher currently at Completion. Support level is combination of Weekly diagonal trend line where area of confluence of the support trend line is currently holding price at this support level. A stop below this level is considered safe where if the stop is reached the trade has failed or there was unexpected spike in price action.

This AB swing could end at the 50% or 61.8% fib levels where we would have a completion point of the 78.6% of a Bearish Gartley pattern. If the AB swing has a 78.6 move then we can expect price to continue with a upside bias where 127 extension will be area of completion. This move to the upside will hint at the possible sentiment for longer term price action and/or a possible correction to the downside depending on the pattern that forms.

If we see a Bearish Gartley, Bearish Cypher, Bearish Bat Form we can expect a correction to the downside before a larger move to the upside.

If we see a Bearish Butterfly or bearish crab form we can expect more upside momentum in the coming weeks with a minimal downside correction.

My Trades for the next 4 Swings

Current Pattern In Play

Resistance Levels FIb Expansions

Another chance to grab a long position near the bottom at completion of a bullish pattern on the 15M/30M Charts. This completion point will signal a H1 Pattern beginning its CD leg of a Bearish Butterfly. This leg should start the trade to the upside on the H4 and D1 where we have multiple CD legs simultaneously in play which normally provides the needed momentum for CD legs. This appears to be exactly what we need to reach my Weekly R1 target level.

Trade half way to target level R1. We have a clear view that the support/resistance levels revealed by using FIB ABC objective tool (expansion levels) are always great when placing additional positions, targets and stop losses. Here price is reacting off of them exactly as expected. I am adding a position when price confirms the move is begining to the upside again. I have a buy limit order 173.750. Gartley Pattern forming on the 15m could push price down to the support level activate my order and create hidden bullish divergence on the H1 and the H4 to create the momentum for price to reach my target level of R1

Another cleaner view of the pattern in play--Get ready for a sell signal at the completion point. I am going to manage my second position and let price stop me out and when doing so will stop me in to the downside move. This appears that the upside move could go further than the current target level. Likely the R1 stops the bulls and gives plenty of time to asses the what to do before the move continues or decides to reverse.

ON PACE

Following our forecast nicely. This is likely one of the best trades Ive seen in a year. This is the CD leg of a AB=CD pattern with many other patterns confriming this long move. 1000 pips to our target level of 184.712.

Second to last snapshot Target Level Nearly Complete

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