GBPUSD | Perspective for the new week | Follow-up details
With over 60pips move in our direction since my last publication, the character of price action during the course of last week trading session appears to have shed more light on the direction that the majority are heading as price broke and closed below our previous key level @ $1.39850. As multiple rejections of our previous neckline @ $1.39400 (see link below for reference purposes) affirms strength for sellers at this juncture in the market, The Pound continues to drop on the back of a stronger Dollar following a robust NFP release as price breaks down a significant level @ $1.38700 which technically serves as a Neckline of a Triple Top pattern. In this regard, I expect a risk of further decline for the Pound in the coming week(s).
Tendency: Downtrend (Bearish)
Structure: Breakdown | Supply & Demand | Reversal pattern (Triple Top)
Observation: i. The following narrative is a follow-up on my previous broadcast since we are yet to see any significant setup that reveals otherwise.
ii. The pattern formation of three peaks moving into the same area ($1.39400) with pullbacks in between shall be considered complete once the price closes below pattern support @ $1.37800 (Neckline).
iii. The appearance of a Triple Top pattern at a critical zone as our previous Neckline @ $1.39400 predict the reversal in the movement of price action thereby indicating a further slide in price.
iv. As the Key level remains our yard sick for bearish continuation, a further breakdown and retest of $1.38600 shall give rise to a new Supplication area for future selling opportunities and options to add to the existing position.
v. Considering the strong Demand zone @ $1.38600, the early hours/days of the new week might see a price climb to test the Bearish trendline to incite further decline...Trade consciously!😊
vi. I am looking forward to the completion of a possible Harmonic pattern (AB = CD) on the weekly chart ( see chart below for reference purposes).
Trading plan: SELL confirmation with a minimum potential profit of 200 pips.
Risk/Reward: 1:5
Potential Duration: 3 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 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.
Tendency: Downtrend (Bearish)
Structure: Breakdown | Supply & Demand | Reversal pattern (Triple Top)
Observation: i. The following narrative is a follow-up on my previous broadcast since we are yet to see any significant setup that reveals otherwise.
ii. The pattern formation of three peaks moving into the same area ($1.39400) with pullbacks in between shall be considered complete once the price closes below pattern support @ $1.37800 (Neckline).
iii. The appearance of a Triple Top pattern at a critical zone as our previous Neckline @ $1.39400 predict the reversal in the movement of price action thereby indicating a further slide in price.
iv. As the Key level remains our yard sick for bearish continuation, a further breakdown and retest of $1.38600 shall give rise to a new Supplication area for future selling opportunities and options to add to the existing position.
v. Considering the strong Demand zone @ $1.38600, the early hours/days of the new week might see a price climb to test the Bearish trendline to incite further decline...Trade consciously!😊
vi. I am looking forward to the completion of a possible Harmonic pattern (AB = CD) on the weekly chart ( see chart below for reference purposes).
Trading plan: SELL confirmation with a minimum potential profit of 200 pips.
Risk/Reward: 1:5
Potential Duration: 3 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 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.
Comment:
Anticipate an evolution into a harmonic pattern (AB = CD), see my weekly chart below;
Trade smart. Trade consciously
