Tonight I will set a Sell order for GBP/JPY @ 134.46 with TP 133.86 and SL 135.01. My justifcation to sell is as follows:
1. Price action on the hourly charts seems to suggest that new highs are failing to be made. Apart from that any attempts today to reach above 134.40 have been met with resistance which is a signal that the bears are in the area.
2. The trendline reaching from 133.00 to 134.00 has been breached and the price is struggling to get back on top. This line comes in around 134.50 and I am hoping that it will remain resistance if it is tested tonight.
3. The 61.8 Fib level is in the 133.90 zone since it has been breached we may see some buying in that area if it comes into play again.If my sell is triggered taking profit in that zone is a safe play in my opinion.
4. 134.80 looks pivotal to me. If the price breaks this levels and manages to keep momentum above 135.00, then next resistance isn't until 135.60 zone. As the price seems overbought on the 1 hour - daily chart I am betting against a break of 135.00
SOLD FROM 134.35 and TP at 133.85
ReplyDeleteP/L RESULTS +50 pips