GBPUSD, Correction before Continuation
Updated
GU experienced a sharp rally towards the LQP, 1.25 after a correction from the Bearish Butterfly Pattern on the H4 timeframe. However, this rally did not provide enough momentum to continue towards the LQP, 1.25. I expect price to come back down to clear out traders who went long yesterday in NY, but also find an area to use as a support level, to continue pushing towards the LQP, 1.25. A 15 minute Bullish Shark Pattern is expected to be the vehicle for price to keep this area as support. On the H1 timeframe, this Shark Pattern could coincide with a W formation that suggests the price is turning around and no longer going lower. This setup would give price a reason to correct buyers from NY’s session before correcting the massive selloff GU experienced since Friday.
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D point has been triggeredTrade closed: target reached
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