GBPJPY Trading Setup

by: Colibri Trader

Hello Everyone,

Last time’s trading analysis was based on NASDAQ. I was looking for a potential short entry.

My expectations were confirmed and I am in a small short trade. Price action is not really too bearish or bullish. Nothing particular, just sticking with my trade.

Seems like the other american indices are slowing pace a bit. Especially S&P looks like it is getting ready for a break.

From the European indices, I am looking at DAX. There is a daily pin bar, but it is not on a major level, so I will ignore it for the moment.

GBPJPY Trading Setup

Today’s trading setup is coming from GBPJPY. The daily timeframe has printed a huge bearish engulfing pattern.

The weekly candle is almost finished. So far, there is a pin bar that formed just below a major resistance area. The price action of tomorrow will confirm this candle.

I will be looking to possibly short this pair. The potential might be huge. I am looking at the level of 136.00 as the next support/price target level.

There is a potential for even further declines if price action confirms it of course. As a secondary target I am seeing the level of 125.00.

Depending on the intraday picture, I might try to get into a short trade. I will be looking at the levels of 145.00- 145.50 for a potential hint for a trade.

Also, be careful how the price will react to the lows at 144.00. I expect to see some serious barrier there.

Happy Trading,

Colibri Trader

 

p.s.

Have you checked my article on Money Management

Also, check out why Moving Averages Will Make You See FOREX in a Different Light

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