- Entry is at the 88.6 fib from the market high.
- QML entry (Quasimodo Level)
- The buy from the C leg has TP levels that align with this zone as a Fib cluster
- Institutional supply zone
- Bat pattern harmonic completion
My long term bias is for GBP buys but here are some confluences I see for this short opportunity
- Rising wedge formation
- Entry is at the 88.6 fib; also aligns with the completion of a shark pattern harmonic
- QML entry
- 1:6 Risk to Reward
Looking for shorts from that zone:
- Strong rejection off the daily trendline for continued buys
- Completion of a shark pattern on the daily as well
- Looking to take shorts off the 61.8 of C to D
- Aligns with a strong level of resistance
- Continuation of bearish trend
- Might see the reversal occur Friday when Powell speaks
- Broke the trend line, currently retesting it.
- Price is projected to drop between the 61.8 or 68.2 zone before moving another leg up.
- Overall Trend is still bullish
- The 61.8 and 68.2 both have the 200 sma waiting to be touched in the 1 hour and 4 hour charts respectively.
On the 4 hour and Daily, there is a strong potential of a shark pattern completing for GBPAUD .
As of right now, any pullback is for the short. Fundamentally speaking, the bearish sentiment falling on GBP and AUD strength aligns itself with the technical analysis on this pair.
If and once price reaches the target zone for entry, look for reversal candlestick...
When GBPUSD reaches the top of the trend-line I am looking to short this for a big drop.
- Approaching major trend-line
- Shark pattern completion
- Entry price will be at the 88.6% from X (previous touch of the trendline), so the trend-line holding since July remains valid.