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Gbpaudsetup

GBPAUD | Perspective for the new week | Follow-upWith over 200pips in our direction since my last publication (see link below for reference purposes), It appears we are at a juncture in the market that calls for another trading opportunity as the Bullish tendencies continue to build up from a Double Bottom structure. The British Pound to Australian Dollar (GBP/AUD) benefited as the first quarter Australian inflation rate failed to pick up thereby suggesting that inflationary pressure has picked up within the Australian economy as the Aussie failed to take any particular encouragement from this data. Tendency: Uptrend (Bullish) Structure: Breakout | Supply & Demand | Channel | Reversal pattern Observation: i. Since price action broke above Key level at the beginning of the year, the price has continued to thrive above this level most of the time. ii. After I connected the lower highs and lower lows of price with parallel trendlines since late March 2021 to date, the price has been respecting a Channel that depicts a downward trend. iii. Since finding bottom @ AU$1.77500, the appearance of a Double Bottom - a strong reversal pattern emphasizes a rally as the price continues to find Higher highs which culminated into what looks like a Channel Breakout (see chart) during last week trading session. iv. As I remain patient for buying opportunity on this pair, my Key level @ AU$1.78700 shall remain a yardstick for a trading opportunity in the coming week(s). Trading plan: BUY confirmation with a minimum potential profit of 250 pips. Risk/Reward : 1:5 Potential Duration: 4 to 8days 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.
Long
by darcsherry
GBPAUD | Perspective for the new week | Follow-upDespite moving over 250pips in our direction since my last publication; the Bullish tendency projected never gained significant traction as the price finally broke down the Bullish Trendline which also coincides with my Key level @ AU$1.80000 during last week trading session (see link below for reference purposes). As my previous Bullish bias appears to slip away considering the recent breakdown of Key level and previous Bullish trendline, I shall be looking forward to Bearish tendencies this coming week(s) around and below my Key level @ AU$1.80000. Tendency: Downtrend ( Bearish ) Structure: Breakdown | Supply & Demand Observation: i. It is fascinating how the Key level @ AU$1.80000 has served as a major determinant of the prevailing bias of price action in the last 36days. ii. Demand zone which has held price "supported" in the last 14days appears to have handed the baton to the Bears as breakdown followed by rejection of this level points at a possible shift in perspective has happened. iii. My Key level @ AU$1.80000 shall be my yardstick for Bearish expectations in the coming week as any spot below this level is good for me to open a position! iv. This been said, I am advising that taking this trade requires utmost attention as the tendency of an uptrend can not be ignored considering the observations made in my last publication (see link below) and factors that might disrupt this setup giving way for an immediate rally continuation can happen anytime (hereby considering the Breakdown a false one!)... trade consciously :)! Trading plan: SELL confirmation with a minimum potential profit of 250 pips. Risk/Reward : 1:3.5 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 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.
Short
by darcsherry
GBPAUD | Perspective for the new week | Follow-upMy very first speculation this new year was on the GBPAUD and since this publication price has moved over 500pips in our direction as we finally experience a Breakout of AU$1.80000 as predicted (see link below for reference purposes). It appears the major GBP pairs are taking a synchronic upturn following renewed confidence in the UK economy amidst reports that Covid-19 infections have fallen by two-thirds! Tendency: Uptrend ( Bullish ) Structure: Breakout | Supply & Demand | Trendline Observation: i. During the last quarter of 2020, buyers gave in to the strong pressure of Sellers due to a shaky UK economy. ii. Last year ended on a Bearish note for the Pound as a successful Breakdown of my Key level @ AU$1.80000 in December 2020 was followed by strong selling pressure from this level (rejection). ii. Bullish Trendline: The line drawn under pivot lows (Pivot I & II) expresses the prevailing direction of participants in the market as the trend continues to find Higher Highs which finally culminates into a Breakout of Key level last Friday. iii. It is worthy to note that this is the first time this year that the price will close above AU$1.80000 (Key level). iv. Even though the Breakout is not fully confirmed, I have a strong feeling that the Sellers have finally given in to the Buying pressure. v. In this regard, I shall be looking for trading opportunities above AU$1.80000 as I peg my new Demand zone around AU$1.78000/1.8000 in the coming week(s). vi. Please note that as Bullish expectations become high, it is necessary I state here that significant Breakdown of Trendline might consider this bias invalid... Trade consciously :)! Trading plan: BUY confirmation with a minimum potential profit of 800 pips. Risk/Reward : 1:5 Potential Duration: 25 to 40 days NB: This speculation might be considered to make individual decisions on a 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.
Long
by darcsherry
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