GBPJPY looks very interesting, for now I count it as an ABC corrective pattern. This would mean that a bearish break is about to happen. If however we see a bullish break I will most likely count this structure as an 1-2-3 pattern and wait for the wave 4 consolidation before buying GBPJPY and wave 5 continuation. Hence we need to wait for the confirmation but a trade opportunity will present itself very soon.
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Trade active:
I got triggered short at 158. Stop at break even. If the bearish momentum continues for that new daily low (maybe even 147) sell after consolidations.
Comment:
The short I was in gave me just over 100 pips before it reversed bullish again, this was enough to place my stop at break-even. If I mention market dynamic I refer to certain characteristics of a pair but since it is only a characteristic I still have to manage my position closely. However the other scenario I mentioned was a 1-2-3-4-5 wave count. If that happens to be correct we should see a wave 4 consolidation soon. That's what I will be looking for and buy the continuation with stop below the consolidation which will give me an easy trade with good risk/reward which should be minimum 3/1 for me. If not I wait for the next set-up but I would not be surprised to see some profit taking at the end of this week/month on all Pound pairs.
