Hi Guys,
following my analysis to GBP vs JPY:
in the 4H Chart we can see a nice channel builded from april 2020. From the 1st of September price has fallen to the level of 133.000. The price rejected from the channel trendline and is now struggeling to continue the bullish move. Within the channel price created a new bearish trendline at which the price rejected the 3rd time now with a long shadow of an indecision candle. A lot of trader expecting a a move with the overall bullish trend but I see a clear bearish movement, breaking through to channel line below, restesting it just to continue to the price level at 133.500 and then 132.000.
Be careful with this trade there are heavy news tomorrow at 12:35pm when Andrew Bailey (Gov of the Bank of England) speaks. As head of the central bank, which controls short term interest rates, he has more influence over the nation's currency value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy. This is one more reason for me to see a short position in this currency pair.
Feel free to share your opinion on it!
Best,
Lukas
following my analysis to GBP vs JPY:
in the 4H Chart we can see a nice channel builded from april 2020. From the 1st of September price has fallen to the level of 133.000. The price rejected from the channel trendline and is now struggeling to continue the bullish move. Within the channel price created a new bearish trendline at which the price rejected the 3rd time now with a long shadow of an indecision candle. A lot of trader expecting a a move with the overall bullish trend but I see a clear bearish movement, breaking through to channel line below, restesting it just to continue to the price level at 133.500 and then 132.000.
Be careful with this trade there are heavy news tomorrow at 12:35pm when Andrew Bailey (Gov of the Bank of England) speaks. As head of the central bank, which controls short term interest rates, he has more influence over the nation's currency value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy. This is one more reason for me to see a short position in this currency pair.
Feel free to share your opinion on it!
Best,
Lukas