This week I am looking at a bullish Gartley on the GBPNZD. Price already reached the D level and has gone slightly past our PRZ- however, the pattern is still valid in my eyes until it reaches the X level. In terms of structure you can see the pattern os solid. The end of the C:D wave has brought some strong bullish divergence on the RSI, and if you look closely there is also a bullish engulfing candle on the 4 hour chart. Price is also respecting the daily trend line.
I have already entered this trade after the close of the small 1 hour engulfing candle as price seems to be forming a hammer on the 4 hour chart also. I have illustrated this with my true entry, TP and SL levels. Entry at 1.9182
Throughout the week we have several announcements on the GBP including weekly earnings, retail sales, and a rate announcement on Thursday. Should price remain bullish heading into Thursday morning, I will move my stop loss to my original entry level and wait it out. I thoroughly expect this will happen, otherwise I would not be taking this trade.
I do expect price to begin to exhaust and consolidate at the end of the daily trend line- I believe the hartley will be the beginning of the consolidating market.
Gartley ratios:
B: 0.618
C: 0.382 - 0.886
D: 1.272 - 1.618
X-D: 0.786
I have already entered this trade after the close of the small 1 hour engulfing candle as price seems to be forming a hammer on the 4 hour chart also. I have illustrated this with my true entry, TP and SL levels. Entry at 1.9182
Throughout the week we have several announcements on the GBP including weekly earnings, retail sales, and a rate announcement on Thursday. Should price remain bullish heading into Thursday morning, I will move my stop loss to my original entry level and wait it out. I thoroughly expect this will happen, otherwise I would not be taking this trade.
I do expect price to begin to exhaust and consolidate at the end of the daily trend line- I believe the hartley will be the beginning of the consolidating market.
Gartley ratios:
B: 0.618
C: 0.382 - 0.886
D: 1.272 - 1.618
X-D: 0.786
