darcsherry

GBPAUD | Perspective for the new week

Short
FX:GBPAUD   British Pound / Australian Dollar
The continuation of bearish pressures appears to be emphasized at the AU$1.89150/1.89550 area. Since late August 2021, it can be observed that price continue to reject this area as buyers find it difficult to push prices further. Following a continued rejection of AU$1.8950 which also makes a confluence at exactly 61.8% retracement of prior bearish momentum and the disappointing UK Retail Sales report failing to boost the British pound across major pairs, I see an opportunity to t
ake a bearish bias on this pair in the coming week(s).

Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand | Trendline | Reversal pattern ( 61.8% retracement )
Observation: i. The line drawn under pivot lows is a visual representation of the support level which reveals the prevailing direction of price action since the beginning of September 2021.
ii. As far back as April 2019, the AU$1.89150/1.89550 is a zone that has a memory for bearish momentum.
iii. The Bullish Trendline guided price back to AU$1.89350 during last week trading session to form a Double Top look-a-like.
iv. Double Top: Having an extremely bearish technical reversal pattern right inside a Supply zone appears to be a signal that a risk of a further decline in price is imminent as long as the price breaks below AU$1.88400 (Neckline) in the coming week(s).
v. Below Key level @ AU$1.88950 remains a comfortable zone to sell the Pound for the Aussie in the coming week(s).
vi. A further breakdown/retest of AU$1.88400 welcomes an opportunity to add to our existing position... Trade consciously!😊
Trading plan: SELL confirmation with a minimum potential profit of 250 pips.
Risk/Reward: 1:5
Potential Duration: 2 to 7days

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.

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