darcsherry

GBPUSD | Perspective for the new week

Long
FX:GBPUSD   British Pound / U.S. Dollar
After looking forward to Bearish expectations during my last publication on this pair, the price moved against us as it broke through the Descending channel with possibilities that "screams" Bullish expectations in the nearest future(see link below for reference purposes).
The majority of the speculators are looking to short the Pound despite UK data been mostly positive in recent times, considering the Manufacturing Production (MoM), Unemployment Rate dropping to 4.9% in February and jobless claims edging up by only 10,100 in March – both showing the labour market's strength. In this regard, I am having a different perspective as the current set-up looks more Bullish to me!

Tendency: Uptrend ( Bullish )
Structure: Breakout | Supply & Demand | Reversal pattern ( Double Bottom )
Observation: i. From a long term perspective on the Weekly chart, the Pound has been on a Bullish run since last year - 2020.
ii. After hitting a peak @ 1.42400 in Feb 2021, the price has gone through a Corrective phase that appears to find a bottom @ $1.36800 which is confirmed by the appearance of a Double Bottom pattern - a strong reversal set-up.
iii. Since hitting $1.36800 mid-April 2021, the price has continued to find a Higher High which later led to a Successful Breakout of Neckline @ $1.39000 before making a Correction during last week trading session.
iv. In this regard; I have spotted two windows for Buying opportunity (indicated on the chart as Buy window I & II) should price dip further.
v. To be on the safe side for a rally continuation, I shall advise that we look forward to buying above Neckline which is also a Key level ($1.39000) for Bullish expectations.
Trading plan: BUY confirmation with a minimum potential profit of 250 pips.
Risk/Reward: 1:4
Potential Duration: 4 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 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.

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