Hi Traders! GBPJPY bearish setup forming at the moment. A detailed analysis of this sell setup is as follows:
GBPJPY Daily Chart:
On the daily chart the price was moving inside a bullish channel, this channel is formed by the highs and lows reaching parallel resistance and support zones. The price which was respecting these two zones so far has broken down at the bottom of this channel and is currently retesting it. We also have a potential hidden bearish divergence that is forming at the moment, once this divergence completes itself, we may consider as an evidence of bearish pressure. Hence we may now look for more evidences of bearish pressure on lower timeframes in order to start looking for sells.
GBPJPY H4 Chart:
On the H4 chart we have two downtrend lines that has formed from the highs and the price is respecting these two trend lines so far. Both these trend lines coincides on the same zone with the bottom of the daily bullish channel thus forming a critical zone for us. Price has currently reached this trend line, if the price respects these trend lines and move lower again, we may then start looking for sells with bearish evidences. We also have a bearish divergence which we may consider as an evidence of bearish pressure.
Note: Ideally we want to see one more push higher towards 148.50 before the move down.
If you want to learn how to do such analysis yourself, if you are looking for a professional team of traders and one of the best online trading communities, If you are looking for enormous archive of Webinars, Trading Tools, Trading Strategies, Books, Indicators, Expert Advisors and much much more, join my traders academy club for only $97 PER YEAR.
Also you can get one of my strategies free of charge. You will find all the details here
Yours to your success