GBPUSD possible scenarios based on the harmonic patterns
Let’s take a look at the possible scenarios together.
We have two charts to make the picture more clear for you.
Scenario #1 Bullish Cypher at 1.31300.
As seen on the harmonic chart we see that cable will complete a harmonic cypher at D 1.31300 . The same level is the MM 3/8 Bottom of Trading Range as seen on the second chart. We need to see the Cable makes a few H1 closings below 1.31700.
Scenario #2 Bearish Gartley at 1.32400.
As we have written today, 1.32440 is one of the major resistance of smaller chart timeframes. It is the MM 5/8 bottom of the trading range and MA 20 in the daily charts. With lack of major macroeconomic catalyst, it would be difficult to breakout this resistance for Sterling Bulls.
MM 3/8 1.31300 or MM 5/8 1.32400 must be broken, otherwise, we continue to see the price trading in a narrow range.
Scenario #3 Bearish Cypher at 1.33800.