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iamkotryna
Feb 21, 2021 8:46 PM

GBPJPY - SELL Short

British Pound/Japanese YenFXCM

Description

Sooo...

BE PATIENT: The chart shows a deeper pullback IF the price will close below 20MA and below near term trendline, confirming a bearish reversal candlestick pattern.

RSI shows us that my favorite find - bearish regular divergence - is happening. So confirmed pullback + divergence = ;)
However, as much as I love them, I always keep in mind that it can signal price going to consolidation. Anyway, It shows something about to happen! For a little more confirmation, you can wait for RSI to pass 50 mark.

The upper Bolinger band could act as a great resistance level.

In a higher time frame price is trading in an oversold area, so it is perfect for going short.

However, if a pullback is not confirmed, I will not be in a rush to buy. In the daily chart, you can see that the price is approaching a demand area (actually, the price just reached the first selling point).

And if you don't want to go against the trend for a little more peace of mind, you can always wait for the price to find a valid support level and then go long :)

Happy trading!
Comments
HemiforYahweh
why not just ride the wave and keep it simple?
iamkotryna
@HemiforYahweh, I think it is quite simple anyway :) It is just my own preference not to be stuck in the trade for weeks and take some profit before any price correction. I marked areas where price could reverse, so usually, it is my take profit areas only then if the price doesn't show that it continues going with the wave.
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