We have had the break and retest with immediate rejection of the trendline here as shown which lined up nicely with a former swing low point.
However, we have failed to go ahead and make a new lower low. I would look to see how price reacts around the most recent high and make a decision on my bias from there.
Reasons to look at potentially going short;
- Third touch of descending trendline
- 61.8 fib retracement
- Back testing Short term support now possible resistance
- Heading towards dynamic resistance (200MA)
Things to consider before;
- A lot of buying pressure over the last few days (2 of 3 Strong Bullish Candle closures)
- DXY looking bullish, Could see some...
1) Hammer recently printed-
2) Recent candlesticks portraying bulls failing to maintain bullish momentum.
3) D1 Fib levels indicating pullback to reach 0.618 level at a price of 1.20901
4) 3rd trend line bounce on upward trend line
-PA 3rd bounce on 4h trendline
-PA has formed a lower low, likely to form a lower high
-PA not on a zone but there is a short term opportunity
Doji printed on trendline
-Daily (thick blue) trendline was broken hence PA retesting the trendline as support
-R:R = 145.6pips:101.1pips 1:1.44
Potential short with GBP/JPY. Recently price has been trading in a wedge range. The support has been broken, re-tested and looks prime for a short. Before entry I need further confirmation from an EMA(8) and SMA(21) cross-over. My target (1) will be the next area of support at the weekly support 136.500.