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GBP/CAD Short Opportunity at 1.5929

Last updated 1/3/2012 7:55 PM EST (GMT -5) 2 Comments

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Bradley W. Gareiss

Technical Analyst, GFT

A bearish Gartley pattern is currently forming on the GBP/CAD 2hr Chart.  The price symmetry is solid, and so far the time symmetry also looks good.  For proper time symmetry, we would like the CD leg to continue rallying at roughly the same slope as the AB leg.  The trade idea is invalidated if the pair drops to 1.5724 before reaching the entry.

We are looking to sell the GBP/CAD if it rises to 1.5929 (Point D).  Point D is located at the convergence of the following points:

To recap, we will look to sell the GBP/CAD at 1.5929 with our stop placed at 1.5971.  Our initial profit target is 1.5865 (38.2% of CD).

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  • 2hr Chart - Bearish Gartley; sell at 1.5929.

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Comments (2)

FlunaToro

January 04, 2012 at 07:24 AM ET

Hello Brad,
The CD leg on the GBP/CHF is moving pretty fast. Would extend the ABCD to the 88.6? or just sit it out if it keeps going the way it is?

bgareiss

January 04, 2012 at 12:24 PM ET

First of all, please note the trade being referenced is from our Live Market Analysis webinar, not the trade listed above. That situation was a perfect example of long bars negating a trade. We will talk about it tonight on the webinar, but I had zero thoughts of taking it. If you recall, I wasn't looking to take it until much later this evening, and it obviously reaching our entry before that. Also, I would not extend the leg because the BC extension on the GBP/CHF pattern is already 161.8%, which is as far as I like to go. Make sure to tune in tonight for a more detailed explanation.

Brad

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