Dear friends,
Today’s trading setup is extremely simple to follow and to trade. We are looking for the break of the up trend line on the H4 chart of GBPJPY.
Technical Overview:
D1 – Technically everything shows strong bearish momentum at the moment. There is bullish hidden divergence that is being formed at the moment but it is not yet confirmed on the H4 chart, which mean we can expect another leg down. And this is exactly where we want to take advantage with this pair.
H4 – Hidden bearish divergence is being formed right now. In this situation we want to play it safe and conservative. So instead of looking to sell tops in combination with the H1 chart we will be waiting for the break of the H4 up trend line.
Entry:
Wait for the break of the H4 up trend line to go short.
Target 1: 179.00 – last low
Target 2: 178.00 down to 177.00 – we will re-analyze the situation accordingly and find the best exit point
Stop Loss: Protect last high
Keep in mind there is bullish hidden divergence forming on the D1 chart, so once the H4 chart confirms it with bullish regular divergence we will switch our bearish view to bullish. That could also be your exit for the second portion of this potential setup.
Video Explanation:
Wonderful day to all!
Yours,
Vladimir
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