I have been watching this pair closely and found several interesting setups. For the bast few days, GBPJPY has been in a continuous bull trend making new structure highs and higher lows (take a look at the red rising trend-line as well). I see couple of setups. (1) a Bullish AB=CD pattern (Blue Arrows), (2) a Bearish AB=CD Pattern (Pink Arrows), and (3) a rectangular channel (red Arrows + horizontal trend-lines).
Let's look at each of them individually.
Bullish (Blue Arrows) AB=CD Pattern:
We see that the pair has retraced down to the 0.618 AB retracement and the completion is at a 1.414 BC extension. What is also interesting is that this is where we find a 1.272 AB extension.
Bearish (Pink Arrows) AB=CD Pattern:
In this situation, I find that the pair retraced back to a 0.382 AB retracement and the completion is around a 2.618 BC extension and a 1.618 AB confluence.
Both AB=CD patterns do seem to be a perfect area to go short/long on the market. But for the ride up the completion leg, we can take advantage of the consolidation/rectangular channel (red horizontal lines). The target (after a breakout) is shown as red arrows and both directions match levels of structure. This would be great for a quick profit while waiting for the AB=CD completion... but also can be used to ride the completion leg of the pattern to really get more profits (of course... control the greed aspect :D)
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.