GBPUSD chart is showing a combination of strategies of which ABCD being an Up-Trend and CD being a Range (will explain when a trade is formed on that strategy) since it houses more than 4 pivots within a single swing, CD. Now, when a chart shows a combination of strategies, we always have to consider the latest structural development.
In the current chart, a Range is formed with the second Up Swing of the trend which for me is a bonus because a Breakout Failure at Range Support is nothing but a Breakout Failure of Trend Violation Point of Trend ABCD.
A Trend Violation Point is a Point or a Pivot of a Trend which if broken and accepted in the opposite direction of the trend (Trend ABCD in this scenario), the Trend is Violated. A Pullback to the region between BC and the price action around this region will be closely watched for a probably Long on the Pair.
Since, my strategies define short term direction most of the times, I prefer my target to be at the High of the Trend, D while a third Up-Swing is usually larger than the other two Trend Legs.
In the current chart, a Range is formed with the second Up Swing of the trend which for me is a bonus because a Breakout Failure at Range Support is nothing but a Breakout Failure of Trend Violation Point of Trend ABCD.
A Trend Violation Point is a Point or a Pivot of a Trend which if broken and accepted in the opposite direction of the trend (Trend ABCD in this scenario), the Trend is Violated. A Pullback to the region between BC and the price action around this region will be closely watched for a probably Long on the Pair.
Since, my strategies define short term direction most of the times, I prefer my target to be at the High of the Trend, D while a third Up-Swing is usually larger than the other two Trend Legs.