On the monthly time frame GBPAUD price movement is on its way to hit a key level on the Fibonacci retracement which is at 61.8%. I Predict that a bullish cypher pattern (XABCD) is to be formed. Normally I would wait for the buy set up once the Bullish cypher pattern has completed because predicted chart patterns adds a lot of risk to your trade. However, on this occasion I’ve set up a long order position at 1.77754 to take profit at 0.27474 which is around 280 pips.
If my Take profit level hits I will wait for the confirmation of a short order setup for the completion of the leg CD of the Cypher pattern. However, before I enter the short position I will wait for confirmation as the price could continue to go up to KEY LEVEL 2 forming an Elliot wave.
If the CD leg is completed, then that means we have a Bullish Cypher pattern where would buy up to KEY LEVEL 1.
If my Take profit level hits I will wait for the confirmation of a short order setup for the completion of the leg CD of the Cypher pattern. However, before I enter the short position I will wait for confirmation as the price could continue to go up to KEY LEVEL 2 forming an Elliot wave.
If the CD leg is completed, then that means we have a Bullish Cypher pattern where would buy up to KEY LEVEL 1.