GBP/ USD Bearish ABCD
Here on the Pound Dollar (GBP/ USD) we have an ABCD pattern that is in action. I plotted this pattern a week or so ago. What I want to see is that Price to close as a bear candle today end as a bull candle Monday then bear candle Tuesday and enter on Wednesday. all in all just a retest of the high and hop on the sinking ship. As most of the royal pairs there are divergences on the HSI and double tops on the AMP RSI. Ride the trade to 382 of the pattern take 1/2 profit, move stops to BE and let the trade do as it wishes. I have really come to love the ABCD pattern, as its simplicity is un-matched and is the very essence of what every trader aims to do, which is buy low, and sell high. What I really love about it is that the R/R Ratio on these harmonic patterns is much less than the other patterns of Carney's. either you're precisely right or immediately wrong. #riskfreeorbust
Note
Again, we are wanting to see a re-test up to the 1.41XXX range. It should either wick to the level or close as a indecesion candle. Anything more or less and one might find themselves chasing the trade.Note
Still wanting to see the pair Re-test the High. we have an indecision candle at the moment. I want to see PA wick up tp the 1.4145X range before entry. Might get the chance to enter Thursday or Friday depending on how today and tomorrow fare.Note
What we see here is a possible area of consolidation as liquidity is super low at the moment. I would like to see price come back up about 83 or so pips to retest the level before entry. One thing I have learned in the short time trading is that chasing a trade will like leave you frustrated more times that euphoric.
For a day trader a 200 pip move is not too bad but compared to 1100 pips i would like to capitalize on that 82% more :)
So again as said earlier wait for the retest of the 1.40xxx at the minimum and 1.41xxx is optimal. were not looking for a strong bullish engulfing into the level either we want to see either a shooting star, Grave stone Doji, spinning top, hanging man, inverted hammer etc. to signal to us the resistance will hold at those key levels. Or to even sweeten the pot a formation like a double top would be great.
Note
we got our 1.40xxx test early this morning. we need to see a close around the 1.39XXX range for a solid signal. we have our evening star in a solid area of resistance we have our drop, the market is deciding which way to go and hopefully it goes our way!Trade active
After we had our successful retest of the level the trade has been entered. I would not be surprised to see price to revisit the 1.40XX level agiain to make a nice double top pattern and then make the move down. But all of that will happen next week.Trade active
Okay, so, we are having a good trading day in regrds to the pound/ dollar. what I am seeing, however, is today us here in the US had a really good NFP with a 128% increase in jobs claims and our unemployment rate was lower than previous. But, the Cable didn't have an increase in volume today. Now, What that tells me that the trading going on today is sellers picking up the open orders being left behind from the bulls releasing them. So, we could see on of two things. the yellow lines is demonstrating that the cable continues pushing down. Now what, I expect to see because of the lack of increased volume is price come back up to re-test the 1.39XX level then give way which is the white lines. there is a possibility of prices hitting the 1.40XX range and then trend down. Regardless we entered the trade, because the criteria has been met.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.