darcsherry

GBPAUD | Perspective for the new week | Follow-up

Long
FX:GBPAUD   British Pound / Australian Dollar
With over 200pips in our direction since my last publication (see link below for reference purposes), It appears we are at a juncture in the market that calls for another trading opportunity as the Bullish tendencies continue to build up from a Double Bottom structure.
The British Pound to Australian Dollar ( GBP/AUD ) benefited as the first quarter Australian inflation rate failed to pick up thereby suggesting that inflationary pressure has picked up within the Australian economy as the Aussie failed to take any particular encouragement from this data.

Tendency: Uptrend ( Bullish )
Structure: Breakout | Supply & Demand | Channel | Reversal pattern
Observation: i. Since price action broke above Key level at the beginning of the year, the price has continued to thrive above this level most of the time.
ii. After I connected the lower highs and lower lows of price with parallel trendlines since late March 2021 to date, the price has been respecting a Channel that depicts a downward trend.
iii. Since finding bottom @ AU$1.77500, the appearance of a Double Bottom - a strong reversal pattern emphasizes a rally as the price continues to find Higher highs which culminated into what looks like a Channel Breakout (see chart) during last week trading session.
iv. As I remain patient for buying opportunity on this pair, my Key level @ AU$1.78700 shall remain a yardstick for a trading opportunity in the coming week(s).
Trading plan: BUY confirmation with a minimum potential profit of 250 pips.
Risk/Reward: 1:5
Potential Duration: 4 to 8days

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.