A possible bearish pattern is visible on the GBPUSD 4 hour time frame. The blue bearish pattern still needs to make a push higher to complete point D at the BC 0.50% Fib. retracement level where GBPUSD can possibly find sellers to push the pair lower. The BC 0.50% Fib. level is also situated in a possible support/resistance zone. If looking to trade GBPUSD traders should be patient and wait for price to make a move higher to the minimum BC 0.50% Fib. retracement level. Waiting for price to hit the BC 0.50% Fib. retracement minimum will offer a better risk/reward trade setup. Also watching for price to respect the Dynamic Resistance 200MA (brown) and the support/resistance zone will be key signs of a possible reversal lower. Watch for a reaction lower off the BC 0.50% Fib. level in sequences of lower lows and lower highs which will confirm the market has exhausted the upside and will resume the down trend to retest the June 21 2021 lows. First target level will be the blue point C low and 2nd target will be at the AB 2.24% Fib. level. Only time will tell what the GBPUSD pair will do. For now watch to see if price moves up to the BC 0.50% Fib level for possible selling opportunities.
GBPUSD 4 Hour Chart 6.27.2019
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on Twitter for updates and questions> @AidanFX
*** Always use proper risk/money management according to your account size ***
At Elliottwave-Forecast we cover 78 instruments (Forex, Commodities, Indices, Stocks and ETFs) in 4 different timeframes and we offer 5 Live Session Webinars everyday. We do Daily Technical Videos, Elliott Wave Trade Setup Videos and we have a 24 Chat Room. Our clients are always in the loop for the next market move.
Try Elliottwave-Forecast for 14 days FREE !!! Just click here –> 14 day FREE trialBack