FullTimeTrader
Long

GBPUSD-bullish butterfly and cluster for a reaction

FX:GBPUSD   British Pound/U.S. Dollar
1501 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 .
snapshot

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

snapshot

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.
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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
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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!

GBP/USD: 2 possible long entries for a major reversal scenario
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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.
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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.
Thanks!
Reply
Please refer to: http://www.harmonictrader.com/price_patternsbfly.htm
Regards.
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Great chart sir! Thanks!
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Great job sir!
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