Bearish Gartley
From the 4hr chart, I see a potential bearish gartley harmonic pattern forming. This is not a really perfect gartley pattern, as the 61.8% is exceeded. If you are particular about preciseness, then probably this trade may not be suitable for you. However from my view, the markets are never perfect. It always overshoots and undershoots. I will take what the market shows and gives to me.
SHORT GBPUSD1.5550-60
SL 30-40pips
TP1 1.5450
TP2 1.5250
There is nothing new under the sun. The sun rises from the east and sets in the west. Everyday, yesterday and tomorrow. The sun has been rising and setting long before we are born, and it shall continue to do so long after we are gone. There is nothing new under the sun. In the financial markets, there is nothing new at all too. Booms followed by busts. Exuberance comes before a panic. Greed turns into fear when prices tanked. These are nothing new. It is ancient wisdom. This is a key to financial riches. Buy before the boom begins and sell before the bust comes.
GBPUSD has been doing nothing new at all too. The last time it trended strongly was during the 2008 global financial crisis. Where prices drop a whopping -6500pips. Ever since then, it has been trading up and down within well-defined ranges since 2009. I have taken a daily chart and zoomed it out to the max. This allows me to have a bird-eyes view, or a big picture, of the technical situation of GBPUSD. What i found amazes me. Look how well behaved GBPUSD is, since the 2008-2009 global financial crisis!! It has not ventured into any new price territory. It has been meandering about in such precise boundaries, that i can draw nice boxes around the price action.
The 2008-2009 freefall of -6500pips is like a Yangtze river bursting its dams and causing a huge flood. From 2009 until now, it is now a calm, serene, predictable flow of river.
So how do we trade this? The million dollar question in every forex traders’ head. The strategy is then to short at the top of the range. And to long near the bottom of the range. Right now, GBPUSD is approaching the top of range at around 1.5750. See the chart below. I have place my sell orders around 1.5750-60. If this 1.4800-1.5750 is the new defined box, then we could be ranging inside here for many months ahead.
SHORT GBPUSD 1.5750-60
SL above 1.5800
TP (final target) 1.4800