Consequent to this recent sell-off, the GBP is very close to completing a beautiful-looking H4 Garltey pattern around the 1.4258 mark. Not only is this pattern extremely symmetrical, it is also supported by a mid-level number at 1.4250 and a H4 Quasimodo support at 1.4230 which blends nicely with daily support drawn from 1.4231.
Ultimately, our buy zone for this pair can be seen between 1.4230 and 1.4260 (green zone). However, pulling the trigger here without any supporting lower timeframe price action is not something we’d be comfortable with. Reason being is the market could very easily dive below our buy zone and strike 1.4200, which, as most already know, would not invalidate the , thus the pair could still be bought from here (we do not want to see a break beyond the X point at 1.4149). In regards to take-profit targets, this will be dependent on where we enter as H4 supplies could form on approach.
Levels to watch/live orders:
• Buys: Ideally looking for a confirmed entry between 1.4230/1.4260.
• Sells: Flat (Stop loss: N/A).