I have taken quite a number of short term personal trades off public eyes due to my inability to find a long term perspective to share with you on this pair - GBPUSD. From the current set-up tonight, I think I am seeing something concrete that we can hold on to for an extended period of time.
Recent developments reveal that the GBPUSD has advanced to its strongest level in two weeks at $1.363 on Thursday with the initial reaction to the Bank of England's (BOE) rate decision and I am of the opinion that this might be the beginning of a potential rally (maybe short-term).
Tendency: Uptrend (Bullish)
Structure: Supply & Demand | Trendline | Reversal pattern (Double Bottom)
Observation: i. It is obvious that since June 2021, the Pound recorded a drop of over 7% in value against the Greenback to find a bottom at $1.32 in December 2021 and have since been finding higher lows to give room for a potential rally (see daily chart) in the nearest future.
ii. And after the test of $1.375 in January 2022, price action respected a trendline structure which guided price to a new low at $1.336 on the 27th of January 2021 which is higher than the previous low.
iii. Moving on to the 4H chart, a significant level was identified at $1.351 which I shall take to be my key level at this juncture in the market.
iv. Even as the trend line drawn over pivot highs reveals the prevailing direction of speed and price action in the last couple of weeks, the breakout at the beginning of this month could be a signal that the trend is about to change.
iv. During last week trading session, we witnessed price action breaking out of the bearish trendline and this feat shares a confluence with the breakout of key level @ $1.351.
v. In this regard, I suspect that the early hours/days of the new week might see the price dip to test the Neckline of the Double bottom @ $1.33600 to incite rally continuation.
vi. So I have identified a new demand level around 50 to 78.6% retracement of the impulse leg (breakout move which should also respect the new bullish trendline that I think will mature at break above $1.36) for buying opportunity but please note that the area above the key level confirms the bullish bias.
vii. And if a dip does not happen, a reversal structure above the key level should make more sense to take a long position... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 250 pips.
Risk/Reward: 1:4
Potential Duration: 5 to 12days
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.
Recent developments reveal that the GBPUSD has advanced to its strongest level in two weeks at $1.363 on Thursday with the initial reaction to the Bank of England's (BOE) rate decision and I am of the opinion that this might be the beginning of a potential rally (maybe short-term).
Tendency: Uptrend (Bullish)
Structure: Supply & Demand | Trendline | Reversal pattern (Double Bottom)
Observation: i. It is obvious that since June 2021, the Pound recorded a drop of over 7% in value against the Greenback to find a bottom at $1.32 in December 2021 and have since been finding higher lows to give room for a potential rally (see daily chart) in the nearest future.
ii. And after the test of $1.375 in January 2022, price action respected a trendline structure which guided price to a new low at $1.336 on the 27th of January 2021 which is higher than the previous low.
iii. Moving on to the 4H chart, a significant level was identified at $1.351 which I shall take to be my key level at this juncture in the market.
iv. Even as the trend line drawn over pivot highs reveals the prevailing direction of speed and price action in the last couple of weeks, the breakout at the beginning of this month could be a signal that the trend is about to change.
iv. During last week trading session, we witnessed price action breaking out of the bearish trendline and this feat shares a confluence with the breakout of key level @ $1.351.
v. In this regard, I suspect that the early hours/days of the new week might see the price dip to test the Neckline of the Double bottom @ $1.33600 to incite rally continuation.
vi. So I have identified a new demand level around 50 to 78.6% retracement of the impulse leg (breakout move which should also respect the new bullish trendline that I think will mature at break above $1.36) for buying opportunity but please note that the area above the key level confirms the bullish bias.
vii. And if a dip does not happen, a reversal structure above the key level should make more sense to take a long position... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 250 pips.
Risk/Reward: 1:4
Potential Duration: 5 to 12days
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