GBPCHF | Perspective for the new week | Follow-Up
With over a thousand pips since my last publication on this pair (see link below for reference purposes); The Pound has enjoyed dominance over the Swiss franc in the last couple of months and we are presently witnessing a drop in Bullish momentum as price action appears to have transitioned into a corrective phase since the successful Breakdown of Fr1.28000 (Key level) on the 7th of April 2021. Even though we are on an overall Bullish trend (see weekly chart); I am planning to take a counter-trade opportunity on this pair, why?
We might be experiencing a risk of further decline in the coming week(s) as participants who took advantage of the Bull do quick profit-taking with high hopes of a rally in the nearest future.
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand
Observation: i. Breakdown of Key level @ Fr1.28000 has been followed with the multiple rejections of this level as price continues to trade under in the last one month.
ii. From a Bearish perspective, trading below Fr1.28000/1.27000 seems to be a safe juncture to place sell orders in the coming week(s).
iii. Even as Bearish momentum appears imminent, it is important that we take into consideration the major Demand zone @ Fr1.26000/1.25500 area which has held price "supported" since Feb 2021.
iv. With such a strong Demand level ahead of us on this Bearish journey, it is advisable that we remain conscious as any significant rejection of this level might incite a rally continuation.
v. However, should a Breakdown of Demand level happens in the coming week(s); an opportunity to add a position at retest appears to be most appropriate.
vi. CAUTION:
a. Break above and retest of Fr1.280000 incites rally continuation
b. Long term perspective is Bullish hence the need to be conscious throughout the course of this trade is VERY VERY important... Trade consciously! :)
Trading plan: SELL confirmation with a minimum potential profit of 200 pips.
Risk/Reward: 1:4
Potential Duration: 6 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 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.
We might be experiencing a risk of further decline in the coming week(s) as participants who took advantage of the Bull do quick profit-taking with high hopes of a rally in the nearest future.
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand
Observation: i. Breakdown of Key level @ Fr1.28000 has been followed with the multiple rejections of this level as price continues to trade under in the last one month.
ii. From a Bearish perspective, trading below Fr1.28000/1.27000 seems to be a safe juncture to place sell orders in the coming week(s).
iii. Even as Bearish momentum appears imminent, it is important that we take into consideration the major Demand zone @ Fr1.26000/1.25500 area which has held price "supported" since Feb 2021.
iv. With such a strong Demand level ahead of us on this Bearish journey, it is advisable that we remain conscious as any significant rejection of this level might incite a rally continuation.
v. However, should a Breakdown of Demand level happens in the coming week(s); an opportunity to add a position at retest appears to be most appropriate.
vi. CAUTION:
a. Break above and retest of Fr1.280000 incites rally continuation
b. Long term perspective is Bullish hence the need to be conscious throughout the course of this trade is VERY VERY important... Trade consciously! :)
Trading plan: SELL confirmation with a minimum potential profit of 200 pips.
Risk/Reward: 1:4
Potential Duration: 6 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 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.
Trade smart. Trade consciously
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