GBP/USD - Bullish Bat

GBP/USD is currently forming a bullish bat pattern on the 4h chart, providing a trading opportunity with a 1:2.24 risk to reward.

The measurements for a valid bat pattern are detailed below.

XA Retracement: 0.382 - 0.50
AB Retracement: 0.382 - 0.886
BC Projection: 1.618 - 2.618
XA Retracement: 0.886

All 3 measurements form within a close proximity in the potential reversal zone, as you can see the last number in the zone being a 1.618 alternate AB=CD.

Once price pushes lower and confirms the 0.886 measurement we can begin looking at the 1h for an entry.

Have a good week everyone!