Time Frame: 4hrs
Pattern: AB=CD (incomplete)
Pair: GU
Reasoning: Support Trendline broken, previous AB-CD completed. Pattern ratios are inline with expectations 0.618 retracement and 1.682 extension.
Considerations: fundermentals - positive base rate in UK likely to increase by .25bp - its reasonable to assume that this is priced into the market already. Also US FED credit rating has been reduced which could give bullish movement.
AB=CD suggests that each leg should be equal size, or close to. currently there is some room left to complete this pattern. if price closes back up above the s/r trendline, I'll consider the pattern dead and look for another entry.
PZ also sits on a price compression zone. Although I don't think I've drawn the PZ competely accurately, I'd expect the pattern to complete fairly close to this area.
Pattern: AB=CD (incomplete)
Pair: GU
Reasoning: Support Trendline broken, previous AB-CD completed. Pattern ratios are inline with expectations 0.618 retracement and 1.682 extension.
Considerations: fundermentals - positive base rate in UK likely to increase by .25bp - its reasonable to assume that this is priced into the market already. Also US FED credit rating has been reduced which could give bullish movement.
AB=CD suggests that each leg should be equal size, or close to. currently there is some room left to complete this pattern. if price closes back up above the s/r trendline, I'll consider the pattern dead and look for another entry.
PZ also sits on a price compression zone. Although I don't think I've drawn the PZ competely accurately, I'd expect the pattern to complete fairly close to this area.