GBP/JPY 30.08.2017
Our expectations: The price had moved in long term consolidation, after broke the main diagonal support. Forming of Double Top and test of the figure is increasing the probability for decline from current levels.
Comments: The price is at SMA 200 which is matching with the test of the double top. The price is below SMA 50. At diagonal resistance and FiBo 38.2. Technical indicator: CCI(50) is still below 0 - the negative sentiment is still on track. The sentiment for JPY is positive considering that the currency is being used by the investors as a hedging instrument when comes to geopolitical tensions.
Alternative scenario: If the price breaks above the diagonal resistance ( former diagonal support ) and return into the consolidation, the negative scenario will be dismissed.
SL: 143.40
Trader Bozhidar Arabadzhiev
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