GBP/JPY Bullish Butterfly Pattern (be cautious)
Be wary of going long on GBP/JPY. Even without the Bullish
Butterfly Pattern, last Friday's candle got rejected at the
monthly PP level as well as unable to close above the 10SMA
in blue; for harmonic patterns I always wait for a close
above or below the 10SMA as an entry trigger.
If you look at the TRIX MA indicator - custom indicator by
member munkeefonix, absolutely awesome indicator btw, I
use the same one on MT4 - it is sloping down and finds
itself below the zero line. Note also that the TRIX (blue
line) and the TRIX MA (red line) have not come close to
intersecting one another indicating further bearish
pressure to persist.
More evidence that GBP/JPY is still bearish is the fact
that above the 200 & 50SMA have crossed over, i.e. a
bearish cross over.
I believe that price is currently merely testing the break
out level from below the lower support trend line, note
that point B of the pattern is right around the 61.8%
retracement level, thus, a reversal level to send price to
close last Septembre's gap below.
Look at my GBP/JPY weekly time frame analysis where
a Bearish Max Butterfly pattern is still in progress of
targeting point C which is at the 135.595 level.
For those who want to risk a profit with this pattern,
please be cautious and patient.
Trade long (RvR reward 2:1)
Entry: Close above 146.304 and above 10SMA
S/L: 144.841
T/P 1: 147.405
T/P 2: 148.549
T/P 3: 149.230
As always - and especially in this scenario - scale out your
profits and adjust your stop/loss to suit your personal
risk management profile.
Happy trading
Butterfly Pattern, last Friday's candle got rejected at the
monthly PP level as well as unable to close above the 10SMA
in blue; for harmonic patterns I always wait for a close
above or below the 10SMA as an entry trigger.
If you look at the TRIX MA indicator - custom indicator by
member munkeefonix, absolutely awesome indicator btw, I
use the same one on MT4 - it is sloping down and finds
itself below the zero line. Note also that the TRIX (blue
line) and the TRIX MA (red line) have not come close to
intersecting one another indicating further bearish
pressure to persist.
More evidence that GBP/JPY is still bearish is the fact
that above the 200 & 50SMA have crossed over, i.e. a
bearish cross over.
I believe that price is currently merely testing the break
out level from below the lower support trend line, note
that point B of the pattern is right around the 61.8%
retracement level, thus, a reversal level to send price to
close last Septembre's gap below.
Look at my GBP/JPY weekly time frame analysis where
a Bearish Max Butterfly pattern is still in progress of
targeting point C which is at the 135.595 level.
For those who want to risk a profit with this pattern,
please be cautious and patient.
Trade long (RvR reward 2:1)
Entry: Close above 146.304 and above 10SMA
S/L: 144.841
T/P 1: 147.405
T/P 2: 148.549
T/P 3: 149.230
As always - and especially in this scenario - scale out your
profits and adjust your stop/loss to suit your personal
risk management profile.
Happy trading