Best Practice: Failed BM can lead to a possible WRMB on GBPUSD
A good trade plan allows a trader to potentially capitalize on various opportunities even when an analysis changes.
Current picture on the H4 charts
- Previous bearish expansion below 4 x H4 boxes would have fit a BM criteria. However price turned up the next week.
- If price continues to clear above the resistance zone of H4 boxes low, a WRMB condition would be met.
Big Picture look on D1
- Price still needs to clear above an immediate resistance on the D1 charts to head higher and fulfil possible D1 pattern.
- If price is unable to clear the resistance, look for a retracement to pt2 in the form of a 1234 in the lower timeframe in line with the WRMB.
Updated (8th Apr 2014 by Jerome)
Current immediate resistance can be seen clearly on the weekly charts
On the H4 charts, we can see a 1234 pattern.
- Price has since closed above the resistance seen on the weekly chart
- Price has also managed to close above the F6 (Fib-R from pt1 to pt4)
- Next possible resistance is the upper band of the ED channel 13TL and subsequently pt1.
- If price is unable to break the 13TL, look for retracement to previous resistance turned support levels (including previous boxes highs/lows).