GBP/JPY negative technical formation for a possible short

26.05.2017 / 09:37

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GBP/JPY Our expectations: The pair keeps it's down middle-term movement, after couldn't managed to make higher top. The break of the diagonal support increases the probability for decline with stop 144.99 if the price correct or 20 pips over 144.09if breaks level 143.37.

Alternative scenario: If the price breaks over 145.00 the negative formation will be dismissed and the long is more likely to happen.

Comments: Middle-term short is still on track, the incapability for break over 145.00 led to negative technical formation.

The price is below 50 EMA and several bearish candles.

Tenkan-sen goes below Kijun-sen is a negative signal from the indicator Ichimoku kinko Hyo, when the price is below the cloud is a strong signal.

CCI(50)- couldn't managed to go over 0 and pulled back below -100 which is negative signal.

Break below the diagonal support, and as we speask the price is at horizontal support. In this case we have two sceanrios for positioning with stop at 144.99. The first, and more conservative, is to wait correction until 144, where i will enter in position. The second scenario is break and close of a candle below 143.37. In this case i have to put my stop around 20 pips above 144.09.

Stefan D.Angelov Head of Stocks Trading

Varchev Traders

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GBP/JPY negative technical formation for a possible short

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