GBPUSD | Perspective for the new week | Follow-upIt's over 300pips run in our direction since my last publication on this pair (see link below for reference purposes) and it appears another trading opportunity is unfolding as we await the completion of a reversal setup after multiple rejections of the Supply zone @ $1.42250 area in the last 25 days. The Pound edged lower during the Friday trading session but held a couple of pips above the Neckline (Key level) at exactly the $1.41000.
Considering general parameters supporting a positive outlook on Federal Reserve monetary policy, the Dollar’s dominance across major pairs appear to rub on the Pound too with the intent of correcting the long-term Bullish perspective.
Tendency: Downtrend (Bearish)
Structure: Reversal pattern | Supply & Demand
Observation: i. The appearance of what looks like a triple Top structure after price created multiple peaks at nearly the same level @ $1.4200 area indicate a possible price slide should the price move below pattern support at Neckline (Key level @ $1.4100) in the coming week(s).
ii. Multiple rejections of the $1.4200 area in the last 25days signals that the price may no longer be rallying and that lower prices may be on the way!
iii. In this regard, I shall be looking forward to a Breakdown/Retest expectation of Neckline for confirmation to join decline as below Key level @ $1.4100 remains a comfort zone for selling opportunity.
iv. As it occurred on my EURUSD speculation, a further plunge below $1.4000 might welcome addition to the existing position.
v. CAUTION: It is important that I state here that the overall perspective to this pair is Bullish (see weekly chart below) and if price remains above Key level, the whole narrative shall be rendered invalid... Trade consciously! 😊
Trading plan: SELL confirmation with a minimum potential profit of 200 pips.
Risk/Reward : 1:5
Potential Duration: 4 to 10 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 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.
