darcsherry

GBPAUD | Perspective for the week

Long
FX:GBPAUD   British Pound / Australian Dollar
Happy New Year!
It is another new year and we are beginning with a Bullish expectation on the GBPAUD pair as the Double Bottom structure guides us to a potential Higher high in the coming week(s). As at the time of writing the exchange rate for the pair is dangling around AU$1.77040 as we look forward to the appropriate price to buy the Pound Sterling .

Tendency: Uptrend ( Bullish )
Structure: Reversal pattern | Supply & Demand | Double Bottom
Observation: i. The fall of Pound found the bottom in September 2020 @ AU$1.7500 and it appears sellers are finding it difficult to push below this level as price experienced a sharp rejection of this level again in December 2020.
ii. Double Bottom: Rejection of this level (AU$1.7500) the second time followed by Higher Highs give rise to the opinion that we might be at the verge of a reversal.
iii. This been said, it is appropriate that we remain cautious as we grope for confirmations at this juncture in the market.
iv. In this regard, my anticipation of a significant Breakout of AU$1.7900 level and maybe followed by a rejection of this level could be enough reason to hop in the rally.
v. It is worthy to note here that a significant Breakdown of our proposed Demand level might consider this bias invalid... Stay tuned!
Trading plan: BUY confirmation with a minimum potential profit of 600 pips.
Risk/Reward: 1:4
Potential Duration: 10 to 20 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.
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Past performance is not necessarily indicative of future results.
Comment: Finally, a Breakout happens! I await completion of the correction phase to join the rally