darcsherry

GBPAUD | Perspective for the new week | Follow-up

Long
FX:GBPAUD   British Pound / Australian Dollar
My very first speculation this new year was on the GBPAUD and since this publication price has moved over 500pips in our direction as we finally experience a Breakout of AU$1.80000 as predicted (see link below for reference purposes).
It appears the major GBP pairs are taking a synchronic upturn following renewed confidence in the UK economy amidst reports that Covid-19 infections have fallen by two-thirds!

Tendency: Uptrend ( Bullish )
Structure: Breakout | Supply & Demand | Trendline
Observation: i. During the last quarter of 2020, buyers gave in to the strong pressure of Sellers due to a shaky UK economy.
ii. Last year ended on a Bearish note for the Pound as a successful Breakdown of my Key level @ AU$1.80000 in December 2020 was followed by strong selling pressure from this level (rejection).
ii. Bullish Trendline: The line drawn under pivot lows ( Pivot I & II) expresses the prevailing direction of participants in the market as the trend continues to find Higher Highs which finally culminates into a Breakout of Key level last Friday.
iii. It is worthy to note that this is the first time this year that the price will close above AU$1.80000 (Key level).
iv. Even though the Breakout is not fully confirmed, I have a strong feeling that the Sellers have finally given in to the Buying pressure.
v. In this regard, I shall be looking for trading opportunities above AU$1.80000 as I peg my new Demand zone around AU$1.78000/1.8000 in the coming week(s).
vi. Please note that as Bullish expectations become high, it is necessary I state here that significant Breakdown of Trendline might consider this bias invalid... Trade consciously :)!
Trading plan: BUY confirmation with a minimum potential profit of 800 pips.
Risk/Reward: 1:5
Potential Duration: 25 to 40 days

NB: This speculation might be considered to make individual decisions on a 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.