GBPJPY bearish continuation (100+ pips opportunity)
Pound, unlike other currencies that enjoy appreciation vs safe havens under times of sentiment improvement and risk assets bull market has other economical and fundamental problems. Still, the big issue is coronavirus but Brexit uncertainties are weighing on Pound heavily. BOE didn't change rates but left the same as before, plus adding some more stimulus which markets didn't 'cheer' as enough questioning BOE's support to the economy.
JPY appreciated the most last week vs majors and on secular performance as well on the latest Coronavirus fears. Indices and metals were lower as well giving risk-off signals toward the investors.
GBP is still the best candidate to depreciate vs other currencies, but given the mentioned sentiment fact safe havens might hurt Pound more than risk-on currencies. As June is coming near its end sentiment shift might stay for a while and further corrections could keep ongoing.
Technically this pair is bearish from higher timeframes (looking from monthly, weekly, daily) and broke its key near term support levels.
131-133 range might be in-play if we form support on 131, but even lower levels like 130-129 are not excluded due to strong momentum at the moment.
IDEAS:
Any pullback towards 133 as long as the price stays under and doesn't close green daily candle above is a selling opportunity. The best way to enter a sell would be to wait this pullback under these circumstances and enter on last known support breakout. I consider this the safest way to enter the continuation trend market.
By doing it this way you simply eliminate the risk of fakeouts, early entries, and the most important counter-trend trap (bull traps).
Trade at your own risk!
JPY appreciated the most last week vs majors and on secular performance as well on the latest Coronavirus fears. Indices and metals were lower as well giving risk-off signals toward the investors.
GBP is still the best candidate to depreciate vs other currencies, but given the mentioned sentiment fact safe havens might hurt Pound more than risk-on currencies. As June is coming near its end sentiment shift might stay for a while and further corrections could keep ongoing.
Technically this pair is bearish from higher timeframes (looking from monthly, weekly, daily) and broke its key near term support levels.
131-133 range might be in-play if we form support on 131, but even lower levels like 130-129 are not excluded due to strong momentum at the moment.
IDEAS:
Any pullback towards 133 as long as the price stays under and doesn't close green daily candle above is a selling opportunity. The best way to enter a sell would be to wait this pullback under these circumstances and enter on last known support breakout. I consider this the safest way to enter the continuation trend market.
By doing it this way you simply eliminate the risk of fakeouts, early entries, and the most important counter-trend trap (bull traps).
Trade at your own risk!