J_Graystone
Long

GBPUSD Counter Trend Trading Opportunity

FX:GBPUSD   British Pound/U.S. Dollar
672 4 12
As market has come down to test the lowest level of previous support since May 2010 which you can see on the daily chart . We can see that the RSI is massively.

No if you drop to the 60, you will see a double bottom formation and anyone who trades double bottoms, would have entered next bar market hitting conventional target 1s at the 382 retracement . Stops to break even and now you are in a risk free trade looking for target 2s up at the 618 retracement which lines up with previous structure resistance .

The more conservative traders may have been waiting for extra confirmation and waited for a 2618 which market also gave us. The issue was the risk reward would have been inverse.

Now for anyone trading the day trading time frames, then if you drop to the 15 minute chart, you will see that there is a Gartley pattern at market offering a better price entry and great risk reward in this counter trend move looking for target 1s at the 382 and target 2s at the 618.

If you want to come into our live trading room for free and watch us trade live for 3 hours a day, then simply go to http://www.tradeempowered.co.uk and sign up. See you there!

A short video talking you through the analysis on this video https://youtu.be/QumLqnJpXDE
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We have now broken and closed below X which invalidates the pattern and we will probably further movement to the downside.
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DerekUweri71 J_Graystone
or it could be forming another pattern like the butterfly... I wouldn't write this one off just yet. There is also some bullish divergence on RSI. Do you base your Targets on the AD or CD retracement?
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