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.
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.
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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.
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glaazie
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nice call Tim !!
market is going in every direction right now so better for me to just watch
is it the consumer confidence that is making the market so volatile ?
TimStuyts
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My call is purely based on structure and market dynamic and the characteristics of this pair. It seemed to me that GBPJPY was fooling many traders with a last bullish extension. Now I have to see whether it continues lower but you are right the market is volatile. I personally like that but if it settles and we see a consolidation everyone can join the short. If it reverse then we just anticipate as I wrote in the post, it is a risk free trade with stop loss at break even.
glaazie
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the characteristics of the pair in relation that its respects the 61.8 retracement and that kind of stuff ?
sometimes volatility is great but had an awsome short on eurusd and got stopped out at breakeven just 4 pips difference
eurcad trade stopped out no fun at all
market is going in every direction right now so better for me to just watch
is it the consumer confidence that is making the market so volatile ?