This set up on the Pound-Frank shows two bullish
patterns with the exact same D point! The moves share their A, C and D coordinates. GBP is likely to decline until this level; it has reached this price before but was rejected as you can see by the vast wick (which actually landed at the exact same level as the wick of 2011l take a look back). If price closes at our entry, prior wicks aside, it will be a new low for the pair. At this level, price is very likely to be oversold and we will see a bounce due to the new lows.
As the patterns share their A and D points, it is very easy to set up the TP and stop loss levels.
Take profit at the usual 61.8%; stop-losses set at a 3:1 risk- little over 120 pips below the X point. We may see some spikes as price approaches the level of support at the previous wick, thus a forgiving stop loss is necessary.