Tendency: Uptrend ( )
Structure: | Reversal pattern (Triple Bottom) | Breakout
Observation: i.Since the beginning of October 2021, the Pound recorded an enormous 6.04% growth against the Japanese yet but gave up approximately 60% of its gain in the last 3 weeks to settle around the Breakout zone (which is also the Key level) @ JY152 area at the end of last week trading session.
ii. In the last four months (between July and October 2021), we have witnessed multiple rejections of JY149 to set the tone for momentum.
iii. After multiple attempts to overcome the around JY152, the significant Breakout of JY152 recorded on the 8th of October reveals an emphatic breakthrough for buyers hereby supporting a bias for me.
iv. Technically, the appearance of a triple bottom look-a-like is a chart pattern characterized by three equal lows (JY149 area) followed by a breakout above the (JY152 area).
v. This important and strong reversal pattern reveals the strength at which the buyers are taking control of the price action from the sellers.
vi. Following the major uptrend that began on the 1st October 2021, it appears price is going through a correction phase that might culminate around a 61.8/ of the impulse leg to incite a Trend continuation.
vii . In this regard, I have identified a new around JY151/152 area for buying opportunities in the coming week(s).
viii. At this juncture in the market, I am of the opinion that above the Key level @ JY152 remains a safe have to take advantage of a buying opportunity
Caveat: Please note that it is likely that price go much lower if breaking down below the Key level happens in the coming hence it is important that I state here that above the key level remains our comfort zone to buy the Pound… Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 500 pips.
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.
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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.