UPDATE: ALERT! GBPUSD Bullish Deep Crab ***INVALID***UPDATE #2: Prices have now reversed and closed past my PRZ. Therefore, I have closed this trade and will now sit back and see what happens next. I have posted and alternate scenario for what I think will happen if this bearish crab were not to hold. I will now look to that scenario and see what develops after the weekend.
UPDATE: the NFP did cause prices to dip below the PRZ BUT failed to close below it. So the trade and the pattern is still valid. If you got stopped out and did not get back in the trade when prices failed to close below the PRZ, unless you got back in close to the PRZ, I would not suggest to chase the trade. You can put a buy limit order at the D point and wait and see if prices move back down enough to get you in but if prices continue higher towards Target 1, I don't suggest to chase it. Wait till prices hit target 1 and wait for a retrace before attempting to buy for target 2.
As I mentioned in my earlier post on this deep crab completion, I was waiting for prices to penetrate deeper into the PRZ before taking a trade because it is common for that to happen with extension patterns like crab, butterflys and sharks. I was looking for a candlestick reversal formation to give me a sign to take a trade and to reduce my risk on this trade. I got just that with an inside candle and a break of that inside candle to the upside.
I took the trade @1.56000 on the break of the inside candle on the 1-hour chart. In addition, a pin bar is forming on the 4-hour chart but of course, that bar has not yet closed as a pin yet as of this posting. If you have not yet taken this trade, I would wait until the pin bar on the 4-hour time frame closes as a pin and take the trade from there. If you are an aggressive trader, you can take the trade now while prices are still within the PRZ.
