GBPUSD - Bullish Shark Pattern Completion
Hey guys, finally settled down in my new city. It took a long time but I am now living in Shanghai, preparing to share Harmonic patterns with the billions of people here in China. Look forward to more frequent postings as I can now fully concentrate on getting back in harmony with the markets.
First up, I want to share my view on GBPUSD.
Since April, GBPUSD has been falling like a knife from 1.44 all the way to 1.35. During the fall, I did not notice any exponential increase in volume on the daily chart, which like suggests that the fall is likely to stay.
However, last Thursday was when I got interested in it again as I see a decent volume spike, suggesting big traders could be secretly buying into GBP or selling USD.
With volume, it is likely to result in a decent rebound in price or a full blown reversal of trend. I used to always be too optimistic and pray for a big reversal, but I have decided to be less greedy and settle for smaller profits as advocated by Scott Carney.
The Shark pattern on GBPUSD H1 completed last week at around 1.3460. It did a perfect type 1 reversal and hit TP1 around 1.3515.
I miss the trade last week and I am hoping for a type 2 retest this week.
I will be watching for a green candle after price retest 1.3460 to get in on a type 2 entry.
For type 2 entries, the CD 38.2 at 1.3515 will be your first target, followed by 1.3550 as your 2nd target.
Stops will go about 20 pips below X.
Good luck and wish you guys a great trading week ahead!
First up, I want to share my view on GBPUSD.
Since April, GBPUSD has been falling like a knife from 1.44 all the way to 1.35. During the fall, I did not notice any exponential increase in volume on the daily chart, which like suggests that the fall is likely to stay.
However, last Thursday was when I got interested in it again as I see a decent volume spike, suggesting big traders could be secretly buying into GBP or selling USD.
With volume, it is likely to result in a decent rebound in price or a full blown reversal of trend. I used to always be too optimistic and pray for a big reversal, but I have decided to be less greedy and settle for smaller profits as advocated by Scott Carney.
The Shark pattern on GBPUSD H1 completed last week at around 1.3460. It did a perfect type 1 reversal and hit TP1 around 1.3515.
I miss the trade last week and I am hoping for a type 2 retest this week.
I will be watching for a green candle after price retest 1.3460 to get in on a type 2 entry.
For type 2 entries, the CD 38.2 at 1.3515 will be your first target, followed by 1.3550 as your 2nd target.
Stops will go about 20 pips below X.
Good luck and wish you guys a great trading week ahead!
Trade closed: target reached:
Perfect type 2 entry at 1.3500.
TP2 out +50 pips.
TP2 out +50 pips.