Wednesday, July 25, 2018

I Expect GBP/USD To Rally To 1.3362


My first argument in favour of that expectation is the Pesavento butterfly that appeared on the H4 time frame. The harmonic pattern fits all conditions, the mandatory of which is the level of point B compared to the XA ray: 0.786. The pattern fits the rest of the conditions for the formation of the A, C and D rays. The target of the butterfly is point A at 1.3362.


My other argument is the RSI divergence on the D1 time frame between three lows compared to the price, the limit of which is at 1.3395 and is higher than point A.

If the pair cannot break out above the dynamic resistance at 1.3180 it could depreciate toward 1.3080 - 1.3040 to gather liquidity to test the resistance in the zone around 1.3370 – 1.3380 after which it will continue rallying to reach the target of the Pesavento butterfly.


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