Weekly breakout could be exploited

GBPMXN (weekly) chart is showing some interesting features, which lead me to be long on lower time frames.

  • There is some sort of triangle, wedge , or pennant following breakout.
  • The pattern is holding above a level of support (at this time).
  • Based on experience, this creates a probability for further moves north.
  • The Aroon is showing that the bulls are still in control, creating a probability for greater time-momentum.

The above does not mean it cannot break down catastrophically. Every probability in one direction also leaves a probability for the opposite direction. A stop-loss is what limits loss if price moves against my favoured direction.

I do not know what the future will bring - as I have no crystal ball. All I can do is take a controlled acceptable risk. I'm long on a daily time frame with this (which is not advice to others).

GBPMXN is one of those that is very wild and often disobeys some of the rules of technical analysis . So extreme caution is required.
Comment: It looks more like a flag now. Price has come into a daily level of support. This seems like an opportune moment to go long with an acceptable stop-loss.

India's 14 year old Nihal Sarin becomes the youngest Chess grandmaster in the world on 1st June 2019. Third youngest in history. (This does not mean I'm Indian! 😎)
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