GBPAUD | perspective for the new weekThe Pound has been trending higher since the beginning of last year and has since been rejected at A$1.915area on two separate occasions (August 2021 and February 2022) thereby leaving a clue for selling opportunity if the price does not break out of this area.
Tendency: Downtrend (Bearish)
Structure: Supply & Demand | Trendline | Reversal pattern (Double Top)
Observation: i. Zooming in on the daily timeframe, the visual representation of a line drawn under pivot lows reveals the prevailing direction and speed of price action in the last 3 months.
ii. However, after testing the major supply zone around the A$1.92 area; price action appears to began a spiral downward a phenomenon that wants to be similar to what happened in August 2021.
iii. The appearance of a double top structure within an important supplication (A$1.92) area appears to be confirmed when price did a breakdown and retest of its neckline in the last couple of weeks.
iv. In this regard, I shall look forward to a breakdown of the trendline for confirmation to open a short position on this pair in the coming week(s).
v. Hence, the below trendline remains a comfortable area to sell the Pound... Trade consciously!😊
Trading plan: SELL confirmation with a minimum potential profit of 400 pips.
Risk/Reward : 1:3
Potential Duration: 5 to 10days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
