We are updating the bullish trade idea we posted on GBPJPY on the 9th September 2020, price came right to this level and started to bounce higher.
As we mentioned in the original post, if price dropped to this level we wanted to go down to our lower time frames and look for additional confirmation for a bullish trading opportunity which occurred nicely.
As you can see from the 15 Minute chart we have zoomed in on the price action to see more detail and how we would look to enter the trade by being patient and waiting for price show us it could move higher.
We saw two bullish price patterns form right at the level, the first one being a bullish 3 drive pattern and right after that a bullish reversal head & shoulders followed.
Once the 3 drive pattern completed right at the level we posted previously about, we drew an inner diagonal trend line in pink and waited for this to break as our means for execution in the hope that price would rise.
Once we entered the trade our stop loss would go just below the 3rd and final drive low protecting you from having the need for a larger one. On the upside price has already made an intraday high around the 136.23 level allowing a possible 50 pips to manage a profitable trade or giving you the ability for a percentage scale out depending on your trading style.
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Quick update, price has now reached an intraday high of 136.59 from our entry.