GBPCHF | Perspective for the new week | Follow-up details
We witnessed over 200pips move in our direction since my last publication on this pair (see link below for reference purposes) and ...?
Fr1.25400 area - Price is currently oscillating within a very sensitive borderline where the probability of bullish and bearish momentum is almost of the same possibility. A significant engulfing candle, either way, could send the price all the way hence the need to have a critical observation coupled with parameters that will give a clue into what direction price is likely to move towards in the coming week(s).
Tendency: Downtrend (Bearish)
Structure: Supply & Demand | Trendline | Reversal pattern (Double Top)
Observation: i. Following the bullish momentum that gripped the market since the 6th of December 2021, the Fr1.254 level has held price "resisted" since mid-January 2022 hereby revealing an underlying strength in favour of the sellers at this juncture in the market.
ii. The line drawn under pivot lows reveals the prevailing direction of speed and price action in the last 10 days.
iii. However, Buyers have found it difficult to continue the momentum as multiple rejections of Fr1.254 is preventing the price from soaring which puts a dent in my last prediction ( see link below for reference purposes).
iv. If we go as far back as 2015, we will notice how the Fr1.254 area has been a major determinant of price as a break above or below normally sends price in the direction of the break (see weekly chart).
v. Equipped with this information and observing how selling pressure has increased in the last 22 days ( between the 13th of Jan and last week trading session), my bias is slightly tilting towards shorting the Pound against the Swiss franc in the coming week(s).
vi. Double Top: The appearance of an extremely bearish technical reversal pattern forming after price tested Fr1.23 area two consecutive times during last week trading session is giving more credibility to the bearish momentum suspected.
vii. To also emphasize the strength of the selling pressure is the drop in demand zone from Fr1.245 to Fr1.242 in the space of 2 weeks.
viii. With a Key level identified at Fr1.25, I shall be looking forward to a breakdown of this level which will also coincide with the breakdown of Bullish Trendline. So, what this means is that below Key level remains a comfortable area to short the Pound in the coming week(s).
CAUTION: All this being said, should we see a significant breakout of Fr1.254 in the coming week(s) then we shall be reverting to the previous analysis supporting a bullish bias (see link below)... Trade consciously!😊
Trading plan: SELL confirmation with a minimum potential profit of 200 pips.
Risk/Reward: 1:4
Potential Duration: 3 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.
Fr1.25400 area - Price is currently oscillating within a very sensitive borderline where the probability of bullish and bearish momentum is almost of the same possibility. A significant engulfing candle, either way, could send the price all the way hence the need to have a critical observation coupled with parameters that will give a clue into what direction price is likely to move towards in the coming week(s).
Tendency: Downtrend (Bearish)
Structure: Supply & Demand | Trendline | Reversal pattern (Double Top)
Observation: i. Following the bullish momentum that gripped the market since the 6th of December 2021, the Fr1.254 level has held price "resisted" since mid-January 2022 hereby revealing an underlying strength in favour of the sellers at this juncture in the market.
ii. The line drawn under pivot lows reveals the prevailing direction of speed and price action in the last 10 days.
iii. However, Buyers have found it difficult to continue the momentum as multiple rejections of Fr1.254 is preventing the price from soaring which puts a dent in my last prediction ( see link below for reference purposes).
iv. If we go as far back as 2015, we will notice how the Fr1.254 area has been a major determinant of price as a break above or below normally sends price in the direction of the break (see weekly chart).
v. Equipped with this information and observing how selling pressure has increased in the last 22 days ( between the 13th of Jan and last week trading session), my bias is slightly tilting towards shorting the Pound against the Swiss franc in the coming week(s).
vi. Double Top: The appearance of an extremely bearish technical reversal pattern forming after price tested Fr1.23 area two consecutive times during last week trading session is giving more credibility to the bearish momentum suspected.
vii. To also emphasize the strength of the selling pressure is the drop in demand zone from Fr1.245 to Fr1.242 in the space of 2 weeks.
viii. With a Key level identified at Fr1.25, I shall be looking forward to a breakdown of this level which will also coincide with the breakdown of Bullish Trendline. So, what this means is that below Key level remains a comfortable area to short the Pound in the coming week(s).
CAUTION: All this being said, should we see a significant breakout of Fr1.254 in the coming week(s) then we shall be reverting to the previous analysis supporting a bullish bias (see link below)... Trade consciously!😊
Trading plan: SELL confirmation with a minimum potential profit of 200 pips.
Risk/Reward: 1:4
Potential Duration: 3 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.
Trade smart. Trade consciously
