This is my idea for the GBPUSD . We have broken a Pattern that I missed. Currently the pair is retesting the pattern support (now resistance; red solid lines). We will probably see a continued drop down to structure at 1.531. If I were to enter this trade, then I would wait for a break in structure because this will raise the alarm to me that we are now going on the we have seen lately (look on the ).
The pattern completion is shown in as a pink arrow and corresponds to a of swing low to swing high. I plan on taking my first half out at a level higher (below the 0.5 retracement) because I have identified a level of support at that area (blue dashed line). This could be a place for a reversal our short retracement.
My second target though is based on the completion. This, to me (and I could be 100% wrong), is a highly probable scenario. Why? Because:
(1) Pattern completes at a 1.414 BC completion
(2) Structure is spot on at this level! Not just on the 1hr timeframe but also on the as well
Now, we can have the situation where the pair decides to continue the overall downtrend. In that situation, we could possibly see a continuation all the way down (in the long-run) to the 1.48384 level (previous support).
Trade wisely, Trade responsibly.
Comments/Suggestions are always welcomed.