GBPUSD-bullish butterfly and cluster for a reaction
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.
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.
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!
Thanks!
Regards.