Lovely little set up here. GBPJPY approaching a double bottom set up and a key buy zone historically.
Confluences for this trade
1. Need to see price reach same area as previous bottom. If not i will not take the trade. Once reached look for continues rejection probably on lower time frames (15 min and 30 min).
2. This pair has dropped a lot recently so normally...
If this bull market collapses, those short-sellers who are in profit would need to be prepared for bull-rebellions.
The 200 EMA (or MA) is normally an area for rebellion. I'm looking ahead - as I'm short in this market.
I do not suggest that the 200EMA is a price target.
Disclaimers : This is not advice or encouragement to trade securities. No predictions...
Looks like we are completing the second right shoulder of this reversal pattern ,
All tops of three completed shoulders so far creating a trend line , that's been crossed by the head, looks likely that the fourth shoulder will touch that trendline as well,
Reverse head and shoulder patterns are as reliable as Head And Shoulder tops patterns, they do take...
We have a monthly reversal, November was a downtrend with -138 pips.
We also see a double bottom/W formation AT THE P LINE
We have the reversal taking off FROM THE P LINE
On the Daily chart, we have a Bullish Pinbar
On the 4 hour chart presenting us with an engufing candle stick pattern