GBPJPY price stalled at support area and formed the formation I call "The Box". Usually, it foregoes a bigger move, so when the price exits this yellow rectangle, we may see it going fast towards next support or resistance area.
Yesterdays trade idea worked out really well even though sellers came in earlier than expected. The impulsive moves are getting weaker and volatility is increasing so I do not expect the next possible sell-off to be as strong. Still, we should make it down to the 100-area before more buyers step in.
For almost a month we had a breakout forming. For now price is holding at the top of the breakout zone. If buyers are willing to step in here we might see a bigger bullish move since there really is not much standing in the way in form of resistance all the way up to 1.81000.
Things to keep in mind though:
1. Be careful with GBP crosses today due to interest...
Strong Breakout with the overall trend reacting to bullish trend line providing beautifully strong support below. Pair that with a stop placed below the pivots it's a tidy little set up
For those who went short last week on this bearish Price action pinbar, you should be over 3:1 ROI, the aim is still to reach 101.2 for a nice 4.5:1 ROI.
You can move you Stop loss and keep an eye on Bullish Price Action to get out of this trade.
Happy Trading
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Tight corrective structure after strong sell-off indicating the sellers are still highly present with low levels of profit taking.
Resistance zone between 102.70-103.30. If that area manages to hold as resistance next targets are most likely 101.25 and 100.20.
The corrective structure that has formed after the last strong sell-off suggests further downside. Primary target around 8.5350. If that level folds 8.40 would be a plausible next target.
EURAUD is still sitting on key level support and just formed a bullish pinbar. Ideal entry would be 50% range of the pinbar candle and stop loss is below the low of that pinbar with at least 3 to 1 risk to reward ratio. Trade safely.
NZDUSD is sitting on key level support in line with the bullish momentum. Price had just braked out on the recently created inside bar pattern, a consolidation-continuation pattern in the market. An ideal entry is a buy stop above the high of the pinbar and we have enough room for a decent risk to reward ratio. Trade Safely.
