GBP/USD is currently forming a bullish bat pattern on the 4h chart, providing a trading opportunity with a 1:2.24 risk to reward.
The measurements for a valid bat pattern are detailed below.
XA Retracement: 0.382 - 0.50
AB Retracement: 0.382 - 0.886
BC Projection: 1.618 - 2.618
XA Retracement: 0.886
All 3 measurements form within a close proximity in the potential reversal zone, as you can see the last number in the zone being a 1.618 alternate AB=CD.
Once price pushes lower and confirms the 0.886 measurement we can begin looking at the 1h for an entry.
Have a good week everyone!
The measurements for a valid bat pattern are detailed below.
XA Retracement: 0.382 - 0.50
AB Retracement: 0.382 - 0.886
BC Projection: 1.618 - 2.618
XA Retracement: 0.886
All 3 measurements form within a close proximity in the potential reversal zone, as you can see the last number in the zone being a 1.618 alternate AB=CD.
Once price pushes lower and confirms the 0.886 measurement we can begin looking at the 1h for an entry.
Have a good week everyone!
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