EURGBP | Perspective for the new week | Follow-Up
With over 350pips in the kitty, the price continues deep lower in our favour since my last publication on this pair (see link below for reference purposes). As the tendency for price finding lower lows increases, I suspect that the Euro risk a further decline in the coming week(s) on the back of the Pound finding "better days"!
In this regard, a very simple set-up here-in reveals a short-term trading opportunity we can take advantage of.
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand | Trendline
Observation: i. Buyers loose the grip of pushing the price higher from Demand level GBP0.87500 mid Feb 2021.
ii. Breakdown of Key level @ GBP0.87500 followed by a rejection of this level last Friday with "shooting stars" pronounces a the strength sellers have at this juncture in the market.
iii. Bearish Trendline: The line drawn over pivot highs (Pivots I, II & III on the chart) reveals the prevailing direction of price action.
iii. I am expecting the recent lower lows to transpose into an ABCD pattern with parameters explained below;
a. Leg A-to-B is expected to be in harmony with the potential C-to-D leg.
b. The B- to-C leg at 61.8% (with a possible 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 @ GBP0.84500 area.
iv. In the coming week(s); the GBP0.86750 level will be regarded as a yardstick to maintain my Bearish expectations on this pair.
Trading plan: SELL confirmation with a minimum potential profit of 220 pips.
Risk/Reward: 1:5
Potential Duration: 7 to 12 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.
In this regard, a very simple set-up here-in reveals a short-term trading opportunity we can take advantage of.
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand | Trendline
Observation: i. Buyers loose the grip of pushing the price higher from Demand level GBP0.87500 mid Feb 2021.
ii. Breakdown of Key level @ GBP0.87500 followed by a rejection of this level last Friday with "shooting stars" pronounces a the strength sellers have at this juncture in the market.
iii. Bearish Trendline: The line drawn over pivot highs (Pivots I, II & III on the chart) reveals the prevailing direction of price action.
iii. I am expecting the recent lower lows to transpose into an ABCD pattern with parameters explained below;
a. Leg A-to-B is expected to be in harmony with the potential C-to-D leg.
b. The B- to-C leg at 61.8% (with a possible 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 @ GBP0.84500 area.
iv. In the coming week(s); the GBP0.86750 level will be regarded as a yardstick to maintain my Bearish expectations on this pair.
Trading plan: SELL confirmation with a minimum potential profit of 220 pips.
Risk/Reward: 1:5
Potential Duration: 7 to 12 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.
Trade smart. Trade consciously
