Going into yesterday’s London session, Cable was aggressively offered following a string of disappointing U.K. data which saw the pair tumble over 200 pips in one sitting! Following this lemming-like stampede, prices began to stabilize as U.S. traders entered the market around the 1.4300 handle.
Consequent to this recent sell-off, the GBP is very close to completing a beautiful-looking H4 Harmonic 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 Harmonic pattern, 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).
Comments
MarcoB
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Hello,
Price is at Monthly, Weekly, Daily and 4H Demand. High probability to rally to Weekly Supply at 1.4800 - 1.4950.
Price is at Monthly, Weekly, Daily and 4H Demand. High probability to rally to Weekly Supply at 1.4800 - 1.4950.
What lower timeframe do you use for confirmation?
Thanks