Tonight I feel like the market is too short. At these levels a drop lower would be significant and I don't see it happening right now. I plan to go long on GBP/JPY @ 132. 32 with a TP 133.15 and SL 131.80. I will be buying because:
1. Based on the 4 hour charts there are multiple forms of support. First there is the 38.2 Fib level from the move up. Second is the 100 EMA just below around 131.85, and the third is a trend line. Also the RSI is showing divergence on the last bounce ( like a jewel in the sea)
2. Also on the 4 hour there is candlestick pattern. It's a variation of the engulfing patter.
3. The price is making lower lows on the 1 hour chart and looks prone to to take out very near resistance at 132.50 .
4. Overall 5 min - 30 min charts are looking constructive. 100 EMA broken on the 5 min and staying above. EMA's on 15 and 30 min are getting close.
P/L RESULTS = + 83 pips
ReplyDelete