GBPUSD | Perspective for the new week | Follow-up details
With over 300pips in our kitty as predicted in my last publication (see link below for reference purposes); the Price is back at around $1.38ish - a level I advised that we add sell position ( see previous publication). The successful Breakdown of Key levels on the 18th of July 2021 emphasizes a risk of further decline in price for the Pound in the coming week(s).
After almost a week of selling frenzy, the Pound experienced a phase of recovery during last week trading session to test $1.37800 with a Double Top structure appearing right at our Key level hereby supporting my Bearish expectation on this pair.
Tendency: Downtrend (Bearish)
Structure: Breakdown | Supply & Demand | Trendline | Reversal pattern (Double Top)
Observation: i. $1.37550 (Demand zone) which held price "supported" for 15 days was finally broken to the downside on the 18th of July 2021 to impress the dominance of sellers in the market.
ii. The Breakdown followed by a complete retest of this Key level will strengthen my bias for a sell in the coming week.
iii. Double Top: The appearance of an extremely bearish technical reversal pattern at the Key level after the price reached a peak two consecutive times ($1.37800 & $1.37750 respectively)points at risk of further decline as a breakdown of Neckline @ $1.373000 confirms completion of a reversal set-up.
iv. It is worthy to note that the Double Top structure shares a confluence with a 61.8% retracement of AB leg and Bearish Trendline with a high probability of transitioning into a Harmonic (AB = CD) pattern with parameters explained below;
a. Impulse A-to-B is expected to be in harmony with the potential C-to-D leg.
b. The B- to-C leg is currently at 61.8% Fibonacci retracement (with a possibility of retracing into 78.6%) of the A-to-B leg.
c. The C-to-D leg is expected to fall within 127.2 - 1.414% Fib. ext . of the A-to-B move @ $1.34800 area.
v. Below $1.37550 remains our yardstick to sell the GBP in the coming week(s).
vi. Breakout/Retest of $1.37300 and $1.36900 shall be our two opportunities to add to the existing position... Trade consciously!😊
Trading plan: SELL confirmation with a minimum potential profit of 200 pips.
Risk/Reward: 1:6
Potential Duration: 3 to 7 days
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.
After almost a week of selling frenzy, the Pound experienced a phase of recovery during last week trading session to test $1.37800 with a Double Top structure appearing right at our Key level hereby supporting my Bearish expectation on this pair.
Tendency: Downtrend (Bearish)
Structure: Breakdown | Supply & Demand | Trendline | Reversal pattern (Double Top)
Observation: i. $1.37550 (Demand zone) which held price "supported" for 15 days was finally broken to the downside on the 18th of July 2021 to impress the dominance of sellers in the market.
ii. The Breakdown followed by a complete retest of this Key level will strengthen my bias for a sell in the coming week.
iii. Double Top: The appearance of an extremely bearish technical reversal pattern at the Key level after the price reached a peak two consecutive times ($1.37800 & $1.37750 respectively)points at risk of further decline as a breakdown of Neckline @ $1.373000 confirms completion of a reversal set-up.
iv. It is worthy to note that the Double Top structure shares a confluence with a 61.8% retracement of AB leg and Bearish Trendline with a high probability of transitioning into a Harmonic (AB = CD) pattern with parameters explained below;
a. Impulse A-to-B is expected to be in harmony with the potential C-to-D leg.
b. The B- to-C leg is currently at 61.8% Fibonacci retracement (with a possibility of retracing into 78.6%) of the A-to-B leg.
c. The C-to-D leg is expected to fall within 127.2 - 1.414% Fib. ext . of the A-to-B move @ $1.34800 area.
v. Below $1.37550 remains our yardstick to sell the GBP in the coming week(s).
vi. Breakout/Retest of $1.37300 and $1.36900 shall be our two opportunities to add to the existing position... Trade consciously!😊
Trading plan: SELL confirmation with a minimum potential profit of 200 pips.
Risk/Reward: 1:6
Potential Duration: 3 to 7 days
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
