The GBP keeps maintaining a strong short-term momentum in favour of the COT long contract positions. This may lead to a re-test of the 140.000 area. Still we should not forget that the short contracts are still with much higher sizes.
From a COT perspective as well as from a technical one we can see that GBPJPY still has some space to move towards the 140.000 level. Right now strong demand has been seen near the monthly critical near 135.000 level.
Today we will go through 2 possible scenarios:
1. Price breaking over the daily critical upper trendline near 137.000. Re-testing it and receiving support towards 140.000. Afterwards there are high chances that the final leg of the “M” structure will form. This result in a trend reversal towards the daily critical near 131.000.
2.The less likely scenario to happen: Price doing a trend reversal near the 137.000 area due to strong sell pressure coming from the daily upper trendline .
Strong rejections from the zones mentioned above will be a clear indicator that one of the scenarios for GBP/JPY will take place.
Happy Trading!
From a COT perspective as well as from a technical one we can see that GBPJPY still has some space to move towards the 140.000 level. Right now strong demand has been seen near the monthly critical near 135.000 level.
Today we will go through 2 possible scenarios:
1. Price breaking over the daily critical upper trendline near 137.000. Re-testing it and receiving support towards 140.000. Afterwards there are high chances that the final leg of the “M” structure will form. This result in a trend reversal towards the daily critical near 131.000.
2.The less likely scenario to happen: Price doing a trend reversal near the 137.000 area due to strong sell pressure coming from the daily upper trendline .
Strong rejections from the zones mentioned above will be a clear indicator that one of the scenarios for GBP/JPY will take place.
Happy Trading!