GBPUSD: Quick & Clean Analysis - POTENTIAL Bearish Cypher

FX:GBPUSD   British Pound/U.S. Dollar
What you see here is a POTENTIAL bearish cypher pattern that could be setting up. Won't know for sure until the D point is reached if this is a Cypher . But in the meantime, here's what you can do for a trade based on other factors....

OVERVIEW ( Daily Chart )
As you can see here, this pair is in a corrective wave I've labeled an ABC zigzag . With the recent bottom, it has just finished wave B and starting wave C. If this is correct, this is a great opportunity to jump on board.

4HR View
Zooming in on current price action, you can see that it's oversold on the RSI as well at the current bottom

Going with my wave labeling, I am making the assumption that the bottom just put in is the low of the wave B of the ABC corrective pattern. If that is the case, then now is a very good chance to get in on the coming wave C up. If the AB=CD harmonic projection of wave C is also correct, then this wave C up could potentially be A LOT of pips. If you play the wave C, keep in mind that it's a LONG TERM trade maybe in the order of a few months time. If you are a swing trader, then just keep the wave C in mind and look for trend-continuation patterns.

The potential bearish Cypher I have placed on the main chart would also contain the retest of the broken lower trend line of the previous wedge pattern. Prices will often retest prior broken trend lines as you well know.

Personally, I've already taken a LONG position based on the recent PA. I will stay in the trade up to the bearish Cypher completion and close 50% of the trade and watch the price action as prices retest the lower trend line of the previous wedge pattern that was broken. At that point, prices should RETRACE back down to probably hit target 1 and/or target 2 (not shown) of the Cypher before resuming moving up.

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