GBPCHF | Perspective for the new week | Follow-upA total of 300pips move in our direction since my last publication on this pair (150pips move twice from Supply zone - see link below for reference purposes) and It is interesting how the Key level @ Fr1.27000 transposes into a major determinant of price action since February 2021 (check weekly/daily chart) as a Break above/below of this level incited a trend continuation. Following the latest development in the character of market structure coupled with the strength of the Breakout of Key level (Fr1.27000) that happened during last week trading session, I am about to switch bias from my previous speculation.
Tendency: Uptrend (Bullish)
Structure: Breakout | Supply & Demand | Reversal pattern (Double Bottom)
Observation: i. Double Bottom: Structure reveals a change in trend and a momentum reversal from prior Bearish price action; The twice-touched low is considered a significant support level.
ii. The appearance of a Double Bottom pattern culminated in a successful Breakout of the Neckline (Fr1.27000) during the course of last week trading session to set the pace for a potential Bullish momentum.
iii. The Fr1.71000 area that "resisted" price for 9 days was finally broken on the 16th of June 2021 with an engulfing candle thereby expressing the Buyer's strength at this juncture in the market.
iv. I am of the opinion that the Breakout is currently going through a Correction phase ("quick sells" from participants who took advantage of the Bull run) that will complete and find support at the Neckline area with the anticipation of a rally in the coming week(s).
v. In this regard, I have identified a new demand level for future buying opportunity within the vicinity of the Fr1.27000/1.267000 area (see chart).
vi. Should price continue as predicted, a break above Fr1.27650 might welcome addition to our existing position... Trade consciously!😊
Trading plan: SELL confirmation with a minimum potential profit of 150 pips.
Risk/Reward : 1:5
Potential Duration: 1 to 5days
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 financial market (including foreign exchange, commodity trading, CFDs, stocks etc.) involve 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.
