GBPCAD Double Bat Pattern 4H

14 May 2014

Double opportunity on GBPCAD, with a bearish bat and a bullish bat.

Let's go through the blue pattern formation, we got B at XA 0.5 then a potential C at AB 0.786.
If the markets reaches C then go back for XA 0.886 (at 0.8529). However, i don't see any ratio confluence, so i don't think it'll complete.
Now i'll explain the orange pattern, B at XA 0.5 then C at AB 0.886. At the last candle we can see the wick getting long as the price goes up.
Meaning it could be a shooting star (=reversal in trend continuation). RSI is at 27%, it has the strength to go and complete orange pattern.

Let's say the market keeps going high, what do we do ?
1- Watch out for price to go down and reach D point of orange pattern.I
f the price goes higher than last high (C point) then the orange pattern is invalid
2-If the market goes for 1.8533, then i'll look for more indicators of PRZ (potential reversal zone)

Best case scenario, market pulls down to 1.8258, then goes back up reaching target 1 and 2. However going for D of blue pattern is quite a big move. I add more info for targets if orange completes.

Good Luck,
alphabetacharlie