Here we have the GBPUSD chart on the four hour please see detailed breakdown of the analysis below:
(Blue Pattern): The completed and price reversed from 'd' point twice. First hitting the 0.23 retracement then 0.50. Price has now dropped straight past the 'd' point and is hovering between x and d of the . It is yet to reach x point.
Bat (Pink Pattern): A larger bat is forming and price is dropping towards d point for a potential reversal.
I see two possible scenarios:
Scenario One: Price rejects 'x' of and reverses to complete full 0.618 target on
Scenario Two: Price rejects 'd' of and drops to complete bat.
I will be watching price closely at opening. Personally, I think it will reject 'd' of the and continue to travel towards the 'd' of the bat inline with the downtrend shown on the chart (grey line).
Not the simplest of analysis but covers a few options.
Would appreciate any thoughts or opinions on this.