LeeThompson97

GBP/JPY - MAJOR CONFLUENCE for a Short Position

Short
FX:GBPJPY   British Pound / Japanese Yen
As shown by my recent trade setup (Linked to this idea), price broke out of a wedge and is now retesting the lower trendline. There is a key area of resistance that price has not broken yet (shown by the blue box), key fib retracement levels can also be found in the same zone, the lower trendline also falls within this resistance zone and finally there is a double top . With all of these falling in the same zone, it provides a very strong opportunity for a short. Stop loss can be placed above the blue resistance zone but room should be allowed for price to move around this area. The first take profit area is a key area of support - furthermore, the profit target is at the same zone as the double top targets. The second profit target is at 1.2764 area (where the next support level can be found)