From the daily perspective , price action was created a fake breakout on GJ, and after that closed below the strong structure, normally after the fake breakout, the next pattern could be HNS pattern or IHNS pattern, and now GJ is creating the right shoulder of HNS pattern.
From the COT perspective, hedge funds are keep closing their long and short positions on GBP for few weeks, but the GBP is keep pushing to the upside without adding any long positions on GBP, this implied that they want short at a better price, in simple language, they want to sell at a higher price. And in the lastest week, they finally adding around 4k of short position on GBP, so GBP become weaker in the following week is expected. And I noticed from the COT data, hedge funds were increased around 4k of long positions on JPY, since JPY is safe heaven currency, and now we are experiencing a recession, so the JPY will become stronger is expected.
I will be monitoring the 4h price action inside the daily resistance if there has shown any confirmation inside this area, then I will take a short position on GJ with a good risk-reward.
Remember, always reacting to the market instead of predicting the market, this analysis is based on technical and COT perspective.
Comment down below and let me know your thought.
From the COT perspective, hedge funds are keep closing their long and short positions on GBP for few weeks, but the GBP is keep pushing to the upside without adding any long positions on GBP, this implied that they want short at a better price, in simple language, they want to sell at a higher price. And in the lastest week, they finally adding around 4k of short position on GBP, so GBP become weaker in the following week is expected. And I noticed from the COT data, hedge funds were increased around 4k of long positions on JPY, since JPY is safe heaven currency, and now we are experiencing a recession, so the JPY will become stronger is expected.
I will be monitoring the 4h price action inside the daily resistance if there has shown any confirmation inside this area, then I will take a short position on GJ with a good risk-reward.
Remember, always reacting to the market instead of predicting the market, this analysis is based on technical and COT perspective.
Comment down below and let me know your thought.