Daily view: From this timeframe, we can see that price rebounded just beautifully from the daily demand area seen at 1.5088-1.5216 (surrounds the aforementioned weekly swap level), consequently taking back any losses incurred on Monday.
4hr view: For those who read our previous report on the GBP, you may recall that we placed a pending buy order at 1.5228, just above a 4hr Bat completion area seen in green at 1.5224-1.5164 (located around the upper limits of the aforementioned daily demand area). As you can see, our order was filled on Monday, and is now in profit. We have already crossed the first barrier where we expected trouble – 1.5300, now we have our eye on the first take-profit area 1.5400 which converges with the value 0.382 (A-D retracement), this will be where we will likely move our stop to breakeven. Following this, our final take-profit target will likely be set around the 1.5550 mark – the 0.618 level.
Before price reaches our first take-profit area, however, it is possible we may see a retracement back down to retest 1.5300, which is something we have planned for. With that, 1.5300 will be a barrier we may consider adding to our current position should we see corresponding lower timeframe confirmation…
Levels to watch/ live orders:
• Buys: 1.5228 (Predicative stop-loss orders seen at: 1.5140) 1.5300 (Predicative stop-loss orders seen at: dependent on where one confirms this level).
• Sells: Flat (Predicative stop-loss orders seen at: N/A).
Bravo! I really enjoyed hunting the trade with you. My entry was on the Harami, following some lower time confirmations like momentum divergence. Your take profit targets seem perfectly rational to me, so I am targeting those areas also. My stops on the other 2 lots are now above my entry, so overall pleased with this trade so far, looking forward to this trade developing from here with my free positions. Keep up the good work, and I am happy that you are now that you are using harmonics in your analysis.