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.

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