Greetings fellow traders, today we are analyzing the GBP/AUD 4hr chart, looking at a potential Bullish Butterfly Pattern.
The pattern has passed the D point during the most current 4hr block. Keep an eye on 1) if this 4hr block closes around the D point, and 2) whether reversal candles form. There is a possible 1:4 risk to reward, with a max of 1:6.
The measurements for a butterfly pattern are detailed below:
B: 0.786
C: 0.386 - 0.886
D: 1.618 - 2.240
X to D: 1.272
Will be looking to enter this trade with some more confirmations after the pattern is completed.
Please share your thoughts!
The pattern has passed the D point during the most current 4hr block. Keep an eye on 1) if this 4hr block closes around the D point, and 2) whether reversal candles form. There is a possible 1:4 risk to reward, with a max of 1:6.
The measurements for a butterfly pattern are detailed below:
B: 0.786
C: 0.386 - 0.886
D: 1.618 - 2.240
X to D: 1.272
Will be looking to enter this trade with some more confirmations after the pattern is completed.
Please share your thoughts!
