Here we have a GBPJPY long trade idea. If you like this idea please show your support!
GBP
This trade idea is based off the fact that the Pound (GBP) is reaching a weekly low since the end of September 2021. We are expecting some strength as this is approaching a structure level & this will give us a double bottom reversal pattern indicating we are expecting a possible reversal which we do not want to miss!
This GBP weakness can be seen across other GBP pairs, for example GBPUSD below :
In the chart above you can see a very long wick in the candle indicating less seller and more buyers in the market, this is key indication of a potential reversal as we can see a lot of weakness in the trend and price is struggling to push down any further. This may be another pair you want to consider taking a look at as this also has a very similar potential to GBPJPY
JPY
However the Japanese Yen (JPY) is also very weak pushing GBPJPY higher. This can be seen across many JPY pairs. For example USDJPY below :
As you can see the price is at the bottom of a channel similar to GBPJPY which indicates we are expecting JPY strength. This is also another pair you may want to consider to trade as this is also in a similar position to GBPJPY and would be heading in the bullish direction.
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THANKS!!
Please trade with caution and make sure you set your stop losses and focus on 1 or 2 pairs! Happy Trading 😁