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GBP/USD - Bearish ABCD Pattern |
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Technical Archives |
Written by FX Solutions |
Jul 28 10 20:40 GMT
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GBP/USD - Bearish ABCD Pattern
Throughout the past few months, I have been writing about multiple bearish technical patterns during the recent uptrend in the sterling. Today’s 4 hour chart identifies a bearish ABCD pattern. While, I completely respect the recent uptrend, this technical pattern can provide opportunities for bullish sterling traders to take profit. If valid, we could see the sterling have a retracement towards the 1.5468 area. The following will outline the legs of the pattern:
A to B confirms point C with a 61.8% retracement
B to C confirms point D with a 141.4% expansion level.
A break above the 1.5700 level would negate this pattern. If we are seeing the beginnings of new bearish trend, price action could fall towards the 1.5051 level.
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About the AuthorFX Solutions
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(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend lines in red; horizontal support/resistance lines in yellow; 200-period simple moving average in light blue.) |
