A probable 'M' like pattern is expected to complete at the D level marked by the blue colored box. Based on historical movements of this pair, the M like pattern below most often signals market bulishness.

Good day Traders, this is Kenny Simon giving you a market outlook for this week on the GBP /USD 4Hr chart based on Harmonic Patterns.

As seen on the chart below, a probable ‘M’ like pattern is expected to complete at the D level marked by the blue colored box. Based on historical movements of this pair, the M like pattern below most often signals market ‘Bulishness’ upon completion of this pattern.

 

GBPUSD

 

At the moment, price is seen to still be progressing downwards towards the D point. Previously, prices have often aimed at the PRZ (Potential Reversal Zone) or at the D level marked by any one of the horizontal dark blue lines inside the shaded area before reversing or correcting itself upwards.

At the time of writing, current price is at the 1.5333 level. The expected drop of price is forecasted by many harmonic traders and analysts to be anywhere between the 1.5330 to 1.5216 level in reference to historical significant support and resistance. Prices may appreciate as a reversal towards 1.5515 to the 1.5573 area marked as E and shaded in blue.