EverythingForex

UPDATE: GBPUSD: Possible K.O.D. pattern forming

FX:GBPUSD   BRITISH POUND / U.S. DOLLAR
842 1 20
Last post (see Related Ideas: "GBPUSD: Possible K.O.D. pattern forming") I talked about a "Kiss Of Death" pattern forming in this pair before I went to sleep. Well, wake up and see that prices have broken through the S/R level for that KOD and invalidated that pattern. But hold your horses! Does this mean that prices will now ascend? Let's see.... Prices are now retesting a former TL.

Usually, with a KOD pattern, there will be an expanding pattern in the RSI . in this case, although prices have broken the KOD on the chart, the RSI expanding pattern was not broken.Something to watch. And now, with the rise in prices, this has now created divergence as well. But be careful about divergence! I know many trader's swear by it but I don't. Yes, it's definitely there and it definitely indicates there is some change coming but divergence cannot tell you WHEN that change is coming.

Also, there are 2 POTENTIAL patterns I can see are forming. One is a bat and the other is a crab . The bat wold complete right near a MAJOR S/R Structure which is also the .382 retrace of the previous down trend. If prices complete the bat and hold here and do not break through that MAJOR S/R, then I believe another down trend will start here. And if so, it may be a strong one! If prices do break through that level, then I will be looking at the crab and the .5 - . 618 retracement levels a possible turn.

MY TRADE PLAN
I'll be watching for the prices to first retest that lower TL and see if it holds there. If not, then if prices do challenge and test that MAJOR SR Structure and also complete the bat, I'll be definitely looking to get SHORT there pending some bearishness.

*DISCLAIMER:
Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!

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IMHO, x point is not valid
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