GBPUSD: 3 POTENTIAL Bearish Patterns Set Stage 4 Retrace

When there is a confluence of patterns that point in the same direction, there's probably a good chance that SOMETHING will happen around that point. And we have that possibly happening here soon.

On my chart, I've identified TWO patterns that have confluence: a bearish butterfly and a beraish Gartley pattern. Both patterns D points are very close to one another. In fact, the PRZ of the Gartley would encompass the D point of the butterfly. In addtion, both these patrern's PRZ lie within a SR Zone adding to the confluence.

Obviously, due to the Gartley's fib ratios, this SR Zone and the D points of both patterns are also at/near the 78.6% retrace of the prior wave down. I have projected should prices proceed upwards towards where these patterns would become complete, the RSI at that point should also be somewhere within oversold region as well.

Now, the 3rd beairsh pattern doesn't really have anything to do with the butterfly and the Gartley but it does give a preview of where prices may be headed eventually. And of course, it encompasses both the Gartley and the Butterfly. In other words, the Gartley and the butterfly represent price action within the bearish bat pattern.

Just as a thought exercise and nothing more for now, I have also drawn in a bullish Cyoher. Of course, this cypher does not exist at all for now as there is not even a C point established yet (it's C point would be somewhere near the D points of the Gartely and butterfly).. But I have shown it here ONLY to give some thought as to how far prices MIGHT fall after reaching the 2 bearish patterns. If so, then the cypher actually would complete at/near the lower channel trend line. If so, this would further lend credence to the validity of that trend line. Just a thought.....

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