Looking for a short in the area denoted by the purple box. I will be setting my stop just above the high of the wick of the green candle also in the purple box.
We can see that there has previously been a strong price response to this area and price has yet to return to it - this increases the odds in on favour.
We also have the fundamentals in our...
Pound broke the support level, now become resistance.
Before it could go up, a sell pull back right at the support level is right idea.
Daily Timeframe analysis shows that GBP_JPY is still on leg4.
This week is a very good trade as there is a two trade set-up for GBP_JPY.
One is short trade and another which is bigger move buy trade going up.
GBPJPY is breaking out of a wedge to the upside with a possible target in the 159 area which also coincides with the 78.6 fib level to complete a bearish Gartley where the pair should reverse. It makes sense that any upside in GBP would be limited given the upcoming Brexit vote is just around the corner.
My analysis is for informational purposes only and...
Monthly downside momentum broken
Price currently at price levels where counter trend longs are better probability
Need evidence of buying on smaller time frames first though. Also, profit potential for longs
capped by recently created monthly SZ above price