GBPNZD | Perspective for the new week | Follow-upFollowing Downing street’s lockdown exit plan; the Pounds appears to have found a platform to rise against the Kiwi as confidence in the UK economy resumes!
With over 300pips in our favour since my last publication on this channel (see link below for reference purposes), we might be on the verge of a very LONG rally in the coming week(s) as the price seems to have established a Support @ NZ$1.88500/1.90000 area - a level which has been respected since the beginning of the year since the Breakout on the 15th of January 2021.
Tendency: Uptrend ( Bullish )
Structure: Breakout | Supply & Demand | Reversal pattern (DB)
Observation: i. The Bearish Impulse leg that began in March 2020 appeared to have found a bottom at around NZ$1.85000 to make a Double Bottom structure - a strong reversal pattern that incites Bullish tendencies.
ii. My Key level identified @ NZ$1.90500 as been an area that dictated the momentum of price action since Nov 2020.
iii. This Key level that has been a Supplication zone since Nov 2020 appears to have become a strong Demand level since Breakout (Jan 2021) followed by sharp rejection.
iv. A quick look at my weekly chart supports completion of a reversal pattern as last week trading session culminates with a beautiful "hammer candle"!
v. Last week Friday trading session experienced an engulfing Bullish candle spring out of Demand level to emphasize the strong presence of Buyers at this juncture in the market.
vi. This been said, I shall be looking for buying opportunity anywhere above my Key level @ NZ$1.90500 in the coming week(s) to take advantage of this rally.
Trading plan: BUY confirmation with a minimum potential profit of 800 pips.
Risk/Reward : 1:5
Potential Duration: 20 to 40 days
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 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.
