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Harmoniccrab

EURGBP update (harmonic bullish crab)Here we see EURGBP in a descending channel with the sellers in full control, forming lower highs and lower lows adding selling pressure to the market. Now we are trading in a small expanding descending channel, suggesting that the sellers are stepping out and potentially booking their profits. This gives room for a bullish scenario, and im speculating that the bulls are going to go for another rally up. Late in October I was speculating in a bullish harmonic crab pattern. Some people have their own idea of harmonic patterns. The software I use comes from Scott Carney himself at harmonictrader.com. Its the guy who discovered the patterns and has since then trademarked them. Almost 20 years have passed since he did so. heres the chart: Im expecting prices to break both channels and from here I am looking to see a shift in the trend direction. In order for that to be happen we need to see a break above the resistance at 62% abc projection. I've also noticed the divergences, which is telling us prices are dropping on rising momentum. This typically indicates the the buyers are stepping into the market, buying at discount prices. The abc projections shows key support at 1.27-1.38 extensions is holding and prices had a nice reaction to those areas. This tells me that the support is more likely to hold and drive prices up to where we initially want them to be. This is a trade I did on Monday. Usually a pullback is followed by these set-ups, but if not, its a strong sign that prices are going to continue rallying up. In this particular trade we did not see a significant pullback, which is telling me the probability of prices rising are greater. Thank you for reading the analysis Please dont forget to like the chart and make sure you put your comments in the section below. God bless and happy trading
Long
by MikulovicFOREX