GBPUSD | Perspective for the new week | Follow-up
The greenback appears to be building on structures supporting a rally in the coming week(s) as the Nonfarm Payrolls report draws near.
The price travelled in the opposite direction since my last publication as $1.40000 remains a strong Supplication level ( see link below for reference purposes). A sharp rejection of $1.4000 followed by a significant Breakdown of $1.38300 (key level) during last week trading session send signals of a risk of further decline for the Pound in the coming week(s).
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand | Harmonic patter (AB = CD) | Descending Channel
Observation: i. Connecting the lower highs and lower lows of price with parallel trendlines emphasizes that price action has been caught within a Descending Channel since February 2021.
ii. The Demand zone @ $1.38300 that held price "supported" during the penultimate week was finally broken during last week trading session with momentum favouring the Bears.
iii. The present structure after breakdown supports a transition into a Harmonic pattern (AB = CD) with parameters explained below;
a. Leg A-to-B shall be expected to be in harmony with the C-to-D leg.
b. The B- to-C leg present falls within 61.8% (with the possibility of extending into 78.6%) Fibonacci retracement of the A-to-B leg.
c. The C-to-D leg is expected to fall within 127.2 - 1.414% Fib. ext. of the A-to-B move @ $1.35500 area.
iv. This been said, It possible that price might not break above key level to continue the decline hence it is pertinent that we keep an eye on price action around $1.38300 in the coming week(s):)
Trading plan: SELL confirmation with a minimum potential profit of 300 pips.
Risk/Reward: 1:3.5
Potential Duration: 4 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 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.
The price travelled in the opposite direction since my last publication as $1.40000 remains a strong Supplication level ( see link below for reference purposes). A sharp rejection of $1.4000 followed by a significant Breakdown of $1.38300 (key level) during last week trading session send signals of a risk of further decline for the Pound in the coming week(s).
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand | Harmonic patter (AB = CD) | Descending Channel
Observation: i. Connecting the lower highs and lower lows of price with parallel trendlines emphasizes that price action has been caught within a Descending Channel since February 2021.
ii. The Demand zone @ $1.38300 that held price "supported" during the penultimate week was finally broken during last week trading session with momentum favouring the Bears.
iii. The present structure after breakdown supports a transition into a Harmonic pattern (AB = CD) with parameters explained below;
a. Leg A-to-B shall be expected to be in harmony with the C-to-D leg.
b. The B- to-C leg present falls within 61.8% (with the possibility of extending into 78.6%) Fibonacci retracement of the A-to-B leg.
c. The C-to-D leg is expected to fall within 127.2 - 1.414% Fib. ext. of the A-to-B move @ $1.35500 area.
iv. This been said, It possible that price might not break above key level to continue the decline hence it is pertinent that we keep an eye on price action around $1.38300 in the coming week(s):)
Trading plan: SELL confirmation with a minimum potential profit of 300 pips.
Risk/Reward: 1:3.5
Potential Duration: 4 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 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.
Trade smart. Trade consciously
