GBPAUD (240) Bearish Alt-Bat Pattern Signals Potential Reversal

GBPAUD

Setup Breakdown:
The recent completion of a bearish Alt-Bat pattern suggests a potential shift in market dynamics, signaling a possible downside move. While buyers previously maintained control, the emergence of this harmonic pattern indicates exhaustion. If selling pressure intensifies, the price could retrace towards key Fibonacci levels. A structured risk management approach involves maintaining a 1:2 risk-reward ratio, with stops placement above 2.0299 to accommodate potential retests of the monthly fractal resistance while minimizing exposure. Monitoring price action confirmation remains essential, as a failure to reject resistance could invalidate the setup.

🔹 Key Levels:

Pattern Completed at 2.0212

Target 1: 38.2% Fibonacci retracement @ 2.0000
Target 2: 61.8% Fibonacci retracement @ 1.9862
Stops: Above monthly fractal @ 2.0299

📊 Risk Management Play:

Apply a 1:2 R/R ratio (maximum 1:1)
Stops above 2.0299

[Upon reaching the first target, close half of the initial position size and adjust stops to breakeven.]

[At the second target, continue scaling out by closing another portion of the remaining position & activate a trailing stop or manually adjust stops to secure profits as the trade progresses.]


Safe Trades,
André Cardoso

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