I responded to another GBPJPY trade set-up last week which brought this pair to my attention. I believe that this pair is almost ready for another leg lower.
Today might be slow due to the US banking holiday but that might be just what this pair needs to settle and complete its correction/consolidation.
We have a monthly 38.2 Fibonacci level tested during this consolidation which was also a previous daily low. This level is clearly a level where traders are managing their positions. I like to sell the break lower for a sell and if it decides to move higher we might see a buy opportunity later on, although I prefer a new low first.
This new low should generate divergence for a possible bigger reversal and buy opportunity. But first things first which will be the possible sell trade for me.
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Today might be slow due to the US banking holiday but that might be just what this pair needs to settle and complete its correction/consolidation.
We have a monthly 38.2 Fibonacci level tested during this consolidation which was also a previous daily low. This level is clearly a level where traders are managing their positions. I like to sell the break lower for a sell and if it decides to move higher we might see a buy opportunity later on, although I prefer a new low first.
This new low should generate divergence for a possible bigger reversal and buy opportunity. But first things first which will be the possible sell trade for me.
www.timstuyts.com
facebook/timstuyts/
