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ForceFollower
Oct 23, 2015 10:08 AM

GBPJPY D1: At The Upper MLH Short

British Pound/Japanese YenFXCM

Description

If this pair fails to close above the upper MLH, I'd expect a move a down. A declining MLH, coupled with the horizontal resistance from the range to the left may be a strong enough force to start a more pronounced correction to the downside.
Comments
IvanLabrie
I'm still long, and added to longs on retrace as well.
I think there's a fair chance that it breaks up in a day or two.
ForceFollower
Thanks, Ivan, for the feedback. You're right, it's been a nice rally since the beginning of October, so a long position is duly justified. However, in my opinion, it seems to be ripe for a correction now, as if to somewhat match the decline we saw at the end of September. Not as big as it was back then, but big enough to be marked as a pullback, ie. at least to 184.6.
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