GBPAUD Bullish Move w/Bat Pattern Entry
GBPAUD is in a bullish trend in an ascending channel and it looks like we have the potential for 2 different bat patterns or a butterfly.
If the bullish bat (in black behind the blue butterfly) completes, we're looking at entry around the 1.8930s. The next level of support below the impulse leg (XA) is right around 1.8700 so we might see the market test that level before resuming to the upside. If we do then we can use that psychological level and a butterfly pattern as entry, with a tight stop. Either of these moves will be breaking to the downside of the channel so the channel bottom might become resistance, forcing the trend to be bearish.
If the red bearish bat completes, we're looking at entry around the 1.9580s, but I suspect that if this happens the trend will resume to the upside, so I might look to get long in the 1.9300s.
If the bullish bat (in black behind the blue butterfly) completes, we're looking at entry around the 1.8930s. The next level of support below the impulse leg (XA) is right around 1.8700 so we might see the market test that level before resuming to the upside. If we do then we can use that psychological level and a butterfly pattern as entry, with a tight stop. Either of these moves will be breaking to the downside of the channel so the channel bottom might become resistance, forcing the trend to be bearish.
If the red bearish bat completes, we're looking at entry around the 1.9580s, but I suspect that if this happens the trend will resume to the upside, so I might look to get long in the 1.9300s.