Here is a potential GBP/JPY trading plan for February 27, 2024
Applying The Quarters Theory, we can identify the whole number of 190 as well as the half number of 191 as key potential support and resistance. The pair broke decisively above the 190 whole number early in the session, rallying up to test resistance at the 191 half number where it faced selling pressure.
However, by the end of the session the pair managed to close back above 191, which could signal potential for further upside. On the downside, 190 and the quarter-point of 190.25 held as support and will be important levels to monitor.
However, by the end of the session the pair managed to close back above 191, which could signal potential for further upside. On the downside, 190 and the quarter-point of 190.25 held as support and will be important levels to monitor.
*Buy on dips to 190.50-190.75 zone with stop loss at 190 flat. This level aligns with the quarter-point and buying on pulls back serves as value area to capture upside momentum per The Quarters Theory method.
*Alternatively, buy breakout above 191.326 high with stop under 191 quarter-point. The breakout signals resumption of uptrend.
>>Profit Taking:
*Partial profits to be scaled out at 191.75 (quarter-point below 192 whole number)
*Remaining position to be held with trailing stop below 191 until hitting next quarter-point or whole number target at 192.50.
>>If 192 level gives way:
*Move stop to breakeven
*Next target is 193 whole number, taking partial profits at 192.75 quarter-point below.
>> Trade Management:
*1:1.5 risk/reward minimum ratio.
*Pay close attention to price action and volatility at identified quarter-point decision zones for trail stop adjustments or profit taking.