GBPJPY is always a tough one to pinpoint. But Here are some potetial areas. If it does continue to the down side, we want to see it get away from the floor. The RSI is an excellent tool when used as a point of reference, not an entry signal. If looking for a short situation its important for the RSI to be above the center line at a minimum. Remember that the way I found RSI to be most visually compelling is when its set to 7 versus 14. The oversold and over bought levels are st 25 and 75 versus 30 and 70.
25 and 75, in my opinion, represent the trading range boundaries better. However, you can still use the RSI as it comes and do the same exact thing. The only hard rule to adhere to is that if looking short you need to be above the center line or the 70/75 level (supply level).
As usual, if these targets so not play out as projected, who cares? This is how you need to look at trading. If the price does not behave appropriately to your prefered style, let it do what it does. In trading the most important rule to remember (which most retail traders cant seem to do0 is to WAIT for price to COME TO YOU... never just enter blindly. Its a recipe for disaster for your money.
Paper trade, backtest first. Dont use real cash until you know what you are doing or the market WILL punish you.
25 and 75, in my opinion, represent the trading range boundaries better. However, you can still use the RSI as it comes and do the same exact thing. The only hard rule to adhere to is that if looking short you need to be above the center line or the 70/75 level (supply level).
As usual, if these targets so not play out as projected, who cares? This is how you need to look at trading. If the price does not behave appropriately to your prefered style, let it do what it does. In trading the most important rule to remember (which most retail traders cant seem to do0 is to WAIT for price to COME TO YOU... never just enter blindly. Its a recipe for disaster for your money.
Paper trade, backtest first. Dont use real cash until you know what you are doing or the market WILL punish you.