Forex Trading Library

GBPJPY – Close to a Wedge Breakout

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Monthly: The cross is trading between the 38.2% and 50% pullback level (of 152.09 and 160.45). Price action in February posted a bearish Outside Month, often an indication that the rally is over and the start of a new downward bias

Weekly:  The weekly chart highlights mixed trading for the last 72 weeks as we hold within a bearish Ascending Wedge formation. A break of trend line support (at 146.71) and the measured move target is located at 136.00. This has resulted in the risk/reward ratio being poor to sell at current levels.

Intraday (eight-hours) – There is no clear indication that the selloff is coming to an end. However, we are no in a congestion zone. With the intraday chart close to an exhaustion count, we look to sell into corrective rallies. Solid resistance is located at 150.00 and offers ample risk/reward

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