SMHuss3
Long

Potential GBPJPY LONG approaching

FX_IDC:GBPJPY   POUND STERLING / YEN
This pair has been in a strong bullish uptrend since mid- April, which incidentally is the first point of the bullish trendline .
Since breaking the triangle formation in may, price has shot up, breaking the previous highs of ~189.654.

This pair is all bullish and expected to rise further, however currently I am waiting for price to retest the previous highs of 189.654 as support. This zone is also confluent with a third touch of the bullish trendline ,

IF price does move down into the area within the ellipse, it will provide a good opportunity to enter LONG, given that the trendline holds and there is appropriate price action.

If price does not retrace all the way to retest 189.654, and instead does rise, then it may be ideal to wait for a deeper retracement before entry, in order to maximise the risk reward. However, this decision depends on the trading style of an individual.

Another scenario can be a SHORT move if price does break the trendline and retest the previous high as resistance. Targetting the 23.6% fib, also confluent with previous support and resistance .

Related Ideas

Nice idea! Thanks!
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bogdan.saenko bogdan.saenko
Can you explain when will U enter the trade exactly after retest?
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SMHuss3 bogdan.saenko
If there is a bullish confirmation within the ellipse, for example a bullish engulfing candle.
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