GBPJPY - Short idea
I have noted some confluence on the 4 hr chart for the Guppy. It looks like a potential swing trading opportunity to go short. Perhaps I'll hold until the end of the week.
I've broken my reasoning up into three areas below:
- 21/9 MA's have recently crossed
- Key Fib level lines up with resistance/support
- Broken support now turned resistance
Although my fundamental view of GBPJPY is bullish, we have recently made a lower high on the 4 hr and if resistance holds I think we could see a move lower to the next support level, around the 170.80's area.
I don't normally trade against the larger trend, however as this set up meets my trading criteria I have decided to take a small position.
There is also a good risk/reward ratio. It may not suit smaller accounts if the loss will consume more than 1% of your account size.
I've broken my reasoning up into three areas below:
- 21/9 MA's have recently crossed
- Key Fib level lines up with resistance/support
- Broken support now turned resistance
Although my fundamental view of GBPJPY is bullish, we have recently made a lower high on the 4 hr and if resistance holds I think we could see a move lower to the next support level, around the 170.80's area.
I don't normally trade against the larger trend, however as this set up meets my trading criteria I have decided to take a small position.
There is also a good risk/reward ratio. It may not suit smaller accounts if the loss will consume more than 1% of your account size.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.