GBPAUD: Update

11/02-2020

In the previous post, I shared what appeared to be a Gartley pattern.

Prices did not respect the pattern and went on to complete a butterfly pattern instead.

Check the related idea for more information

I seemed to have miss the potential crab pattern forming, that would have anticipated the highs around 1.97.

The recent highs appear to have acted as a strong support/resistance level in the past and now with two patterns coming together in the same area, chances are that we will most likely see a decline in these prices.
The last time this level was tested was in June 2016. Expecting heavy limit orders to be sitting here, ready to push the market down.
I believe a decline should be anticipated. Profit objectives are the fib levels shown on the chart starting from 38.2% going up.

Overall I think there is a good probability and chance for this pattern to yield fruit.

Dont forget to manage the risk properly.

Thanks for reading folks and happy trading

May God bless!