I have just entered a short position on GBPJPY. I've highlighted the Lower Highs and Lower Lows forming a bearish market structure and I am expecting another Lower High in the blue support/resistance zone.
3.00 Risk Reward on this trade.
Possible gbpjpy sell.
- Higher lows being created as well as lower lows.
- Price moving within a parallel trend line channel.
- Price recently hit resistance zone of parallel trend line as well as horizontal trend line.
- Big buy movement has significantly slowed down.
- Stop loss put in at around 80 pips with a take profit of about 200 pips.
We could have a lovely 300 pip swing trade opportunity here big pip moves on this pairing are not unusual as the past 2 weeks running have seen a 300+ pip move.
Again this is a trade with confluence as you can see our yellow box is where we are looking for price to hit, this lines up with old support and resistance so a key level this would also be the 3rd touch...
Sell GBPJPY 1D FX:GBPJPY
Analysis: The GBPJPY is turning bearish on the daily charts and is positioned to drop further if 131.50 gives way. Technical traders will be looking for a solid daily close below 131.50 which could open a path towards 130.70.
Waiting for price to reach the 618 level which is also previous support/resistance area. Will only be looking take longs once price reaches the area. If not, will look for another set up. Possibly a continuation set up for this pair.