Technical Analysis of GBPAUD: Bearish Gartley Pattern
Updated
Hello traders,
Happy new week to you all.
Allow me to quickly do a detailed analysis of a pattern I identified on the GBPAUD currency pair, called bearish Gartley. I believe in the concerted might of Elliott wave and Harmonic patterns.
The Bearish Gartley pattern is a harmonic pattern that signals a potential reversal in price from bullish to bearish. This pattern consists of four price movements and five points: X, A, B, C, and D. In my GBPAUD analysis today, I noticed the following points:
X = 1.94824
A = 1.89081
B = 1.92500
C = 1.90938
D = 1.93530
To confirm the Bearish Gartley pattern, we need to analyze the Fibonacci retracement levels of these points and verify if they fit the typical Gartley ratios.
Based on the analysis of the Fibonacci ratios, I found that:
The AB leg retraces 59.5% of the XA leg, close to the typical 61.8% retracement.
The BC leg retraces 45.7% of the AB leg, fitting within the typical range of 38.2% to 88.6%.
The CD leg extends 166.0% of the BC leg, slightly above the typical 161.8% but ACCEPTABLE.
The AD leg retraces 77.4% of the XA leg, which is very close to the typical 78.6% retracement.
The Fibonacci ratios calculated for the given points fit well within the typical Bearish Gartley pattern ratios, implying that the pattern is valid and a potential bearish reversal could take place. The sharp reaction of the market from the PRZ zone further confirms thE presence of sellers. We might see the market move slightly to the upside in order to complete the 78.6AD retracement of the XA leg. But I think it should be short-lived. I'm expecting the pair to drop close to the 1.91250 price region.
Cheers and happy trading!!
Happy new week to you all.
Allow me to quickly do a detailed analysis of a pattern I identified on the GBPAUD currency pair, called bearish Gartley. I believe in the concerted might of Elliott wave and Harmonic patterns.
The Bearish Gartley pattern is a harmonic pattern that signals a potential reversal in price from bullish to bearish. This pattern consists of four price movements and five points: X, A, B, C, and D. In my GBPAUD analysis today, I noticed the following points:
X = 1.94824
A = 1.89081
B = 1.92500
C = 1.90938
D = 1.93530
To confirm the Bearish Gartley pattern, we need to analyze the Fibonacci retracement levels of these points and verify if they fit the typical Gartley ratios.
Based on the analysis of the Fibonacci ratios, I found that:
The AB leg retraces 59.5% of the XA leg, close to the typical 61.8% retracement.
The BC leg retraces 45.7% of the AB leg, fitting within the typical range of 38.2% to 88.6%.
The CD leg extends 166.0% of the BC leg, slightly above the typical 161.8% but ACCEPTABLE.
The AD leg retraces 77.4% of the XA leg, which is very close to the typical 78.6% retracement.
The Fibonacci ratios calculated for the given points fit well within the typical Bearish Gartley pattern ratios, implying that the pattern is valid and a potential bearish reversal could take place. The sharp reaction of the market from the PRZ zone further confirms thE presence of sellers. We might see the market move slightly to the upside in order to complete the 78.6AD retracement of the XA leg. But I think it should be short-lived. I'm expecting the pair to drop close to the 1.91250 price region.
Cheers and happy trading!!
Note
Elliott wave confirmation.Note
UPDATE: GBPAUD has done over +50pips. A slight push to the upside would ensue before the drop, as a bullish pattern was spotted on a lower time frame. This push might retest the resistance zone before dropping. However the larger time frame pattern is superior.
Note
UPDATE: CPI pushed price further in our direction, and we have now done +145pips on GBPAUD.Note
From the 1st entry, +162PIPS has been achieved. The 2nd entry has been completed at +100pips.Trade closed: target reached
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