darcsherry

GBPNZD | Perspective for the new week

Long
FX:GBPNZD   British Pound / New Zealand Dollar
The price dipped over 200pips in our direction since the last speculation before the rally began (see link below for reference purposes) and following an emphatic downward spiral that lasted 3 weeks, it appears we are at a juncture in the market that suggests that price is on the verge to reverse.

Tendency: Uptrend ( Bullish )
Structure: Breakout | Supply & Demand | Trendline | Reversal pattern (Triple Bottom)
Observation: i. It has been a Bearish run for the Pound since mid-August, 2021 before it found a bottom at @ NZ$1.93300.
ii. The line drawn over pivot highs is a visual representation revealing the prevailing direction of price action in the last couple of weeks.
iii. Since finding the bottom, the price has gone through a consolidation phase that culminated into what appears to be a successful breakout of Key level @ NZ$1.94250 (Neckline) during last week trading session.
iv. A successful Breakout of the dominant Bearish Trend is a clue that Buyers are beginning to gain momentum.
iv. There is a retest of NZ$1.93900 following the Breakout on the 9th of Sept. 2021.
v. Depending on how the event unfolds when the market resumes next week, the rejection of NZ$1.93900 could be a signal for a rally continuation.
vi. The early hours/days of the new week might see a price plunge into NZ$1.93800 - a level that has been tested more than a couple of times since the beginning of the month (Sept 2021) before the rally begins.
vii . This been said, above Key level @ NZ$1.94250 remains a comfortable area for me to go long in the coming week(s) with an opportunity to add to my existing position at Breakout/Retest of NZ$1.94750... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 300 pips.
Risk/Reward: 1:5
Potential Duration: 5 to 10days

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.