Since my last publication on this pair, we witnessed a surge of 170pips in our direction before the bears eventually came in (see link below for reference purposes).
Despite the heightened risk of a more disruptive Brexit outcome from the ongoing EU-UK tensions over the Northern Ireland protocol and contrary to expectations of the majority, I do have an underlining feeling that the Pound might sneak to the upside a little in the coming week(s) before the decline resumes again. Hence with the appearance of a Double Bottom structure that is awaiting confirmation, we should anticipate a counter-trend opportunity in the meantime.
Tendency: Uptrend (Bullish)
Structure: Supply & Demand | Reversal pattern (Double Bottom) | Trendline
Observation: i.Since mid-October, we have witnessed price action spiral down to a bus stop around Fr1.22800 a couple of times in the month of November 2021.
ii. The visual representation of a resistance trendline drawn over pivot highs reveals the prevailing direction and speed of price action in the last 3 weeks.
iii. And since hitting Fr1.22800(twice), I have observed that sellers are meeting strong resistance from the buyers at this zone making this level a Demand zone to reckon with and in addition evidence of a Breakout of Trendline is beginning to happen in the last couple of days.
iv. The appearance of an evolving Double Bottom within this Demand zone which has a memory as far back as February 2021 for buying potential might not be a coincidence.
v. Double Bottom: Technically, this is a charting pattern that describes a change in trend and a momentum reversal from prior leading price action.
vi. Following the major downtrend that lasted 3 weeks, the appearance of a Double Bottom at this juncture signals a reversal and the beginning of a potential uptrend in the coming week(s) especially when a Breakout/retest of Neckline @ Fr1.24000 is confirmed.
iv. Even as we await a confirmation which will happen if the price break above the Key level @ Fr1.24000 (Neckline); for me, buying opportunity should present itself above Fr1.23650 with an opportunity to add to our existing position at Breakout/retest of Neckline
NB: Please note that this is a temporary counter-trend opportunity within a Bearish perspective...Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 150 pips.
Risk/Reward: 1:4
Potential Duration: 3 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 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.
Despite the heightened risk of a more disruptive Brexit outcome from the ongoing EU-UK tensions over the Northern Ireland protocol and contrary to expectations of the majority, I do have an underlining feeling that the Pound might sneak to the upside a little in the coming week(s) before the decline resumes again. Hence with the appearance of a Double Bottom structure that is awaiting confirmation, we should anticipate a counter-trend opportunity in the meantime.
Tendency: Uptrend (Bullish)
Structure: Supply & Demand | Reversal pattern (Double Bottom) | Trendline
Observation: i.Since mid-October, we have witnessed price action spiral down to a bus stop around Fr1.22800 a couple of times in the month of November 2021.
ii. The visual representation of a resistance trendline drawn over pivot highs reveals the prevailing direction and speed of price action in the last 3 weeks.
iii. And since hitting Fr1.22800(twice), I have observed that sellers are meeting strong resistance from the buyers at this zone making this level a Demand zone to reckon with and in addition evidence of a Breakout of Trendline is beginning to happen in the last couple of days.
iv. The appearance of an evolving Double Bottom within this Demand zone which has a memory as far back as February 2021 for buying potential might not be a coincidence.
v. Double Bottom: Technically, this is a charting pattern that describes a change in trend and a momentum reversal from prior leading price action.
vi. Following the major downtrend that lasted 3 weeks, the appearance of a Double Bottom at this juncture signals a reversal and the beginning of a potential uptrend in the coming week(s) especially when a Breakout/retest of Neckline @ Fr1.24000 is confirmed.
iv. Even as we await a confirmation which will happen if the price break above the Key level @ Fr1.24000 (Neckline); for me, buying opportunity should present itself above Fr1.23650 with an opportunity to add to our existing position at Breakout/retest of Neckline
NB: Please note that this is a temporary counter-trend opportunity within a Bearish perspective...Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 150 pips.
Risk/Reward: 1:4
Potential Duration: 3 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 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
