GBPCHF | perspective for the new weekHopes of Brexit deal wanes again; GBPCHF sinking back towards lows as it finds a haven for selling pressure around Fr1.20300.
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand | Harmonic (AB = CD)
Observation: i. Since completion of Double Top pattern in late Nov. 2020, price continues to risk further decline.
ii. Previous safe haven for Buyers was finally broken last week as price tested Fr1.19100 before making a corrective move.
iii. As price touches 50% retracement of AB leg, a possible Harmonic pattern AB = CD appears to metamorphosize in the coming week(s).
iv. AB = CD pattern shall guide me through the path price action takes in the coming week.
ii. ABCD pattern parameters explained below;
a. Impulse A-to-B will be in harmony with the potential C-to-D leg.
b. The B- to-C leg is at 50% currently (with a possible 61.8 or 78.6% in the future)Fibonacci retracement of the A-to-B leg.
c. The C-to-D leg is expected to fall within 127.2 - 1.414% Fib. ext. of the A-to-B move.
Trading plan: SELL confirmation with a minimum potential profit of 250 pips.
Risk/Reward: 1:3
Potential Duration: 1 to 5 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, 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.
