GBPUSD-bullish butterfly and cluster for a reaction

FX:GBPUSD   British Pound / U.S. Dollar
1502 9 27
Hello, this pair is near a strong cluster where we could expect some pullback or trend change.

Lets see them separately:

We have a wedge and the 1.61 fib extension near the strong psychonumber 1.500. AO also shows bullish divergence .

Last AB=CD pattern near that area also. According to EW that area was a previous wave 4 that could act as support now:

On this chart we have a perfect bullish butterfly almost complete.

IF price get to the PRZ we could expect a reaction or trend change after a strong decline last week.

I would place buy limit orders at 1.500 because this price is a strong support.

SL and targets shown on chart.

Best Regards.

Yes I would agree this could possibly be setting up for a nice 1000-1200 pip move. Patience whilst we await a confirmed turnaround signal.
Yes! from my point of view this pair already bottomed and the next move to the upside should be strong.
+1 Reply
EdKunky FullTimeTrader
You could be right but I do see some potential for hesitation around 5125-5165
Nice, didn't notice the butterfly, thanks 4 sharing!

I had some bats on my radar for a while now and an alert was triggered earlier today. I have 2 possible entries, one the same as you (or 50 pips lower but then we might miss the entry) and the other a bit lower down where a bat might be complete.

Am I correct in saying that this whole structure is frequently seen in reversal scenario's? The Quasimodo pattern that could be complete any day now makes me suspect this but as always I guess we will only know after it has fully completed!

Hello, i agree this looks like a typical reversal structure (we have already the first higher high and the last structure is a correction). Its tricky to find an entry point. According to my analysis we have many reasons to try a long at 1.500 and take at least some pips. If the reversal does not happen here the next entry would be your bat. Regards.
How are the rules of your butterfly pattern? Because I would not agree that it's a butterfly pattern. I am pretty new with those patterns so I would like to know how you do it in order to improve my skills with harmonic patterns.
Please refer to: http://www.harmonictrader.com/price_patternsbfly.htm
Great chart sir! Thanks!
Great job sir!
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