GBP/JPY - long term bearish outlook for excellent swing trade?
After looking at the weekly price action for GBP/JPY we noticed a distinctive pattern reoccurring. Overall the market is in a convincing bearish trend, with significant daily bullish trends within it. Once one of these bullish trend breaks to the downside, it is followed by a significant bearish move, usually as low as the lower boundary of the weekly descending trend line.
Price has just experienced another break to the downside from a daily ascending trend. The ascending daily trend was broken on the 10th Sept. Since then, we saw price fall to 133.5, followed by a pullback to 137.4. If this is the creation of the first 'lower high', we predict that price will be likely to make the next bearish impulse.
As you can see on the weekly chart, once price starts to fall, it falls relatively quickly, over a matter of weeks. This could be an excellent swing trade to play on either the daily or weekly timeframe.
Price has just experienced another break to the downside from a daily ascending trend. The ascending daily trend was broken on the 10th Sept. Since then, we saw price fall to 133.5, followed by a pullback to 137.4. If this is the creation of the first 'lower high', we predict that price will be likely to make the next bearish impulse.
As you can see on the weekly chart, once price starts to fall, it falls relatively quickly, over a matter of weeks. This could be an excellent swing trade to play on either the daily or weekly timeframe.