GBP/USD: Patterns for long targets or short entries...
It seems that several GBP pairs have bottomed and might now be in the process of starting a new up-trend.
I am therefor long this pair for the mid- to longterm, or at least until the 'Brexit' referendum...
A possible level to buy into the bullish move might be coming up when the current gap on GBP pairs which appeared on the open today gets filled, trade example for this scenario is on the chart.
Anyway: PA never moves in a straight line so I've tried to determine some levels to take profits on the long and possibly trade retracements on smaller timeframes and/or buy the end of the possible retracements to get with the prevailing uptrend (i.e. if it sets through...).
The small green pattern is a butterfly which I'm personally not trading but I've included it anyway for reference and because it ends in a previous S/R zone.
The blue pattern is also a butterfly and could have more potential imo since there is confluence with fib levels and a possible trendline test.
The pink one is a bat also with confluence of fib levels.
I will trade any or all of these harmonic patterns only after PA confirmation (ending structures or patterns in confluence with overbought or divergence conditions in the respective PRZ's.
I've also included a Quassimodo pattern for reference, so I will also be looking to rebuy at a new approach of the support zone if this pattern completes (a new HH should first be formed, possibly at one of the harmonic pattern's PRZ's...).
I am therefor long this pair for the mid- to longterm, or at least until the 'Brexit' referendum...
A possible level to buy into the bullish move might be coming up when the current gap on GBP pairs which appeared on the open today gets filled, trade example for this scenario is on the chart.
Anyway: PA never moves in a straight line so I've tried to determine some levels to take profits on the long and possibly trade retracements on smaller timeframes and/or buy the end of the possible retracements to get with the prevailing uptrend (i.e. if it sets through...).
The small green pattern is a butterfly which I'm personally not trading but I've included it anyway for reference and because it ends in a previous S/R zone.
The blue pattern is also a butterfly and could have more potential imo since there is confluence with fib levels and a possible trendline test.
The pink one is a bat also with confluence of fib levels.
I will trade any or all of these harmonic patterns only after PA confirmation (ending structures or patterns in confluence with overbought or divergence conditions in the respective PRZ's.
I've also included a Quassimodo pattern for reference, so I will also be looking to rebuy at a new approach of the support zone if this pattern completes (a new HH should first be formed, possibly at one of the harmonic pattern's PRZ's...).
