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Technical Analysis of GBP/USD - Bearish Crab PatternHello traders, I would like to do detailed technical analysis of GBP/USD currency pair and the potential presence of a bearish crab pattern. The bearish crab pattern is a harmonic chart pattern used by traders to identify potential reversal (correction) points in the market. Let's examine the key aspects of this pattern in GBP/USD, including the retracement levels and extension ratios. Bearish Crab Pattern Overview: The bearish crab pattern is a reversal pattern that typically forms after a strong bullish trend. It consists of four key points: XA, AB, BC, and CD. In the context of GBP/USD, the pattern has the following characteristics: 1. AB retraced XA by 0.598: The first part of the crab pattern is the AB leg, which retraced the XA leg by 0.598. This retracement level indicates a moderate pullback after a strong initial move. 2. BC retraced AB by 0.799: The BC leg of the pattern retraced the AB leg by 0.799. This level of retracement is deeper than the typical Fibonacci retracements, suggesting a more substantial correction. 3. CD is an extension of BC by 3.172: The CD leg is an extension of the BC leg by a ratio of 3.172. This means that the final leg of the pattern extends significantly beyond the BC leg. A 3.172 extension is a common feature of the bearish crab pattern and signals that the reversal is likely to be strong. 4. CD terminates at 1.24285: The CD leg terminates at the price level of 1.24285. This is a crucial point for traders, as it is where the pattern suggests a potential reversal in the GBP/USD pair. Technical Analysis and Implications: The presence of a bearish crab pattern in the GBP/USD currency pair with the described characteristics is a bearish signal. I will be considering the following implications: 1. Reversal Signal : The bearish crab pattern is a reversal/correction pattern, suggesting that the bullish trend in GBP/USD may be losing momentum, and a bearish trend could develop. 2. Resistance Level : The termination point of the CD leg at 1.24285 serves as a significant resistance level which emanated from the rejection of price on the 11th and 12th of October. Having seen a bearish engulfing candlestick pattern at this zone, we anticipate reversal around this price. 3. Stop-Loss and Take-Profit Levels : We are setting 1.24550 as our invalidation zone, while our potential profit areas are 1.22990 and 1.22400 respectively. 4. Confirmation : This pattern is further confirmed by our elliott wave count. The reversal point seems to coincide with the end of impulsive wave 3, confirming that the drop may be a wave 4 correction. And if wave 4, our target should not be big (maybe 1.23006) as the trend is bullish. Conclusion: The presence of a bearish crab pattern in the GBP/USD currency pair with the described characteristics suggests a potential reversal (correction) in the bullish trend. We have seen further confirmation using Elliott wave and price action analysis, but remember no trading idea is foolproof hence the need to manage risk properly. Cheers!!! Chart to EW Analysis:
Short
by Samuel124
BTCUSDT final leg down short?Is it time for BTC to go down? Is this the start of a possible 5th wave? This is only one possible TA for short, although there are many arguments and the possibility that BTC is still going up. But currently the risk reward is so good that this trade looks very attractive. The analysis was made with Fibonacci, Elliot waves and harmonic patterns. Currently BTC reached TP1 for Anti Bat pattern. More on this, that is, in more detail the next day or two, when I have a little more time (and until then, if the bulls want to, I can disable this idea)
Short
by CryptoArch_
SP500: Consolidation in Short Term?Hi Traders! Medium and Long-Term Trends are bullish, but in short term SP500 could remain bearish even after a pullback. If we look at daily chart, the Price Action is approaching an important support area around 4,305, if from here it triggers a bullish leg, it's possible a harmonic structure formation (for us, bearish). Having said that, we have a first Target Area around 4,275 and subsequently 4,220. Trade with care Like | Share | Comment
OANDA:SPX500USDShort
by TheAnonymousBanker
7
GOLD: Daily Analysis |Bullish Pattern|There are many considerations that can be made about Gold, and today we share some of them. In this geopolitical and economic context, Gold is an important pawn on the chessboard. If we want to understand where the price could go in the coming months, we need to understand why we got this far today (as I write the Spot price is 1925). 💡 What is really supporting prices well? The answer is very simple, operators have many doubts and uncertainties, so they buy gold, especially as long as US 10Y remains bullish: (Click on Analysis below) 💲 The US Dollar is also important in this game, and in the coming months it could even surprise us...: (Click on Analysis below) 📈 Technical Analysis Having said this, from a technical point of view, if we look at daily chart, we do not exclude a bullish harmonic structure with an interesting potential target around 2000. 🔏 Risk Management: As we showed in our latest intraday analysis, we went Long the last bearish leg on 1H chart, so it will only be necessary to move stop loss to B/E: (Click on Setup below) 🔴 What could cause this to fail? What could cause this to fail? The FED's interest rate decision and inflation data are expected next week, these events could actually change this scenario. In conclusion, even if this analysis will be correct, the path will be long and full of obstacles, so it will always be necessary to look for intraday supports and potential Reversal Patterns on small time frame every day. Thanks for your attention. Trade with care Like | Share | Comment
OANDA:XAUUSDLong
by TheAnonymousBanker
14
Potential Gold (XAU/USD) Bat; Is gold going down?Soooooo, you know when there's one person in the room that says something crazy.....well I'm possibly about to become that person. My previous post about the long short on the USD/JPY still shows that there is still a little bit of way for the USD to climb before the drop. So, this took me to the gold chart, and here's where we are at present. I have had this bat drawn for around 10 days, and really didn't believe that it would play out, but so far it is. This is IMPORTANT bit....this bat could easily break if closes above point C, it could also really break if it doesn't drop down to point D. To get down to point D we need the DXY to rise....and to get to that point we will need the FED to announce a rate rise. Now I'm fully aware that Wall Street is 60/40 that there will be a halt in rate rises, sending the dollar down, but, and it is a but, this chart is a possibility. If there is a rate hike then the chances are that we are heading to point D at 1866, then put your fib on the CD point and 50% is the TP1, point C is TP2. I'm not saying that any of this will definitely happen, and don't shoot the loony in the room, but it's a possibility that is on the table. Don't forget, the FED won't be worried about throwing the little guy in the street under a bus. Their job is to look after the economy.
TVC:GOLDShort
by Elite_Trading_Signals
USD/CAD: SomeHi everyone! In the past few weeks we have already traded FX:USDCAD pair on the first trendline re-test, but at the same time this technical element could still be useful to us. The big picture on daily chart is harmonic structure followed by corrective structure with ABC Pattern formation. ✔ At the moment, we remain below an important resistance (not shown on chart), but if there is a bullish breakout during the first hours of trading, another bullish consolidation should appear, pushing the price to retest the trendline around the 1.3389 area. ✔ From a technical point of view and following the pair on intraday chart, it could be interesting to take a long position on pullback or corrective structure that will appear. During the next hours/sessions, we will publish new updates, even on minor time frame in the section below, or visit our Blog for a more detailed technical analysis. Trade with care. Analysis by Anonymous Banker Team Like | Share | Comment
Long
by TheAnonymousBanker
18
EURCAD's Price Action shows potential bullish moveGreetings Traders, It is a pleasure to reconnect with you following a brief break. Here is my EURCAD analysis. EURCAD ANALYSIS Taking a long-term view, it is apparent that the EURCAD has been experiencing an upward trend, as evidenced by its movement within an ascending channel. Notably, between April 17th and 26th, there was a substantial rally of approximately 500 pips, resulting in the attainment of the month's highest price (1.51099). However, after reaching the March high, a bearish harmonic reversal pattern (referred to as a crab) appeared, prompting significant selling pressure, which caused the pair to drop until May 1st. On May 4th, the pair experienced a rally to the 1.50974 region, creating a relative double top pattern, followed by a significant decline. Currently, a bullish reversal harmonic pattern (bullish bat) is formed, and it is anticipated that it will prompt a significant bullish pressure towards the supply zone at 1.50770. My short and medium term targets will be 1.48039 and 1.49274 respectively.
Long
by Samuel124