Last week i shorted GBPUSD and this trade is been working very well till now. Price is heading towards our initial target but i have already trailed my stoploss for excellent profit. You can see the progress of this setup in the related link below.
Let's analyze now a new setup which looks very strong. Price is moving in a corrective structure into a nice descending channel after a rally which broke a long term resistance level (black trendline). In the channel i have indetified a bullish butterfly pattern with its D point at a very strong support level.
Butterfly's D point parameters:
- It's between 0.618 - 0.786 of the impulse leg which broke the long term resistance level.
- It's at the bottom line of the channel.
- At the same point we can see an AB=CD bullish pattern.
- Looking to previous structure we see a strong horizontal level.
As for profit we can target the upper trendline of the channel although i strongly believe that price can go beyond that and test 0.618 of the major move to the down.
Good luck,
John.
Let's analyze now a new setup which looks very strong. Price is moving in a corrective structure into a nice descending channel after a rally which broke a long term resistance level (black trendline). In the channel i have indetified a bullish butterfly pattern with its D point at a very strong support level.
Butterfly's D point parameters:
- It's between 0.618 - 0.786 of the impulse leg which broke the long term resistance level.
- It's at the bottom line of the channel.
- At the same point we can see an AB=CD bullish pattern.
- Looking to previous structure we see a strong horizontal level.
As for profit we can target the upper trendline of the channel although i strongly believe that price can go beyond that and test 0.618 of the major move to the down.
Good luck,
John.
