GBP/USD analysis & trading plan by Keon Consultancy
- KeonConsultancy.com
- Nov 9, 2020
- 1 min read
As the harmonic patterns -- which are reversal patterns -- mentioned in this previous analysis completed, we started searching for an opportunity to sell. If a reversal pattern doesn't cause full reversal, it can cause at least a 30% retracement against the total length/move of the pattern.
Since we wanted to exit the sell position at the nearest target, which is 30% of ab, we looked at M30 timeframe to find an early opportunity. As soon as the widening triangle shown in the picture, was broken to the downside, we entered a sell position.
Risk: If the GBP/USD returns back to upside and an H4 candle will close above today's high made so far, exit the trade.
It was closed at BE as it started returning.
As market made a slightly higher high, the nearest target now lies on the low of previous candle which is more likely to be broken. Therefore, we moved the TP to the next nearest target which is 30% of ab.