GBPJPY Corrective Channel Short Setup
Updated
GBPJPY is progressing through a corrective channel (possibly a corrective triangle formation) as seen on the chart. We are looking to short the pair having witnessed price pullback to the top of the channel after a minor breakout move.
This pullback has given us greater shorting opportunities now it has reached the top of the channel for which we will be looking to get in short, indicated by the red arrow.
We are also currently sitting around the 0.382 retracement of the prior impulsive after this month's 'flash crash' - adding to confluence points for this trade.
With mounting pressure on the British economy after Brexit, it is unlikely good economical data will be released this year, and if it is the effect will be minimal (depending on the data). Political troubles also continue to haunt Sterling therefore the outlook for all GBP pairs is very bearish.
This pullback has given us greater shorting opportunities now it has reached the top of the channel for which we will be looking to get in short, indicated by the red arrow.
We are also currently sitting around the 0.382 retracement of the prior impulsive after this month's 'flash crash' - adding to confluence points for this trade.
With mounting pressure on the British economy after Brexit, it is unlikely good economical data will be released this year, and if it is the effect will be minimal (depending on the data). Political troubles also continue to haunt Sterling therefore the outlook for all GBP pairs is very bearish.
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