TLDR plan - go long off a bounce at previous support around 161 to test previous highs of 169.3 and then perhaps a runner up if a break of pysch level 170 to test the top 172.2.
GJ continues to be ranging between 164 and 158 or lower bound 156. After the recent rejection of 166 we feel that there could be a convincing push up from a bounce of 161 following last...
GJ is broadly ranging and complex?
Mid term direction bias still seems to be forming / TBC with a wedge shape formation
Last week's break below 158.65 was rejected with a bounce Monday morning to current levels of 161.2 after liquidity grab
This plan assumes the bounce takes us back up to the previous target resistance and break of the wedge at 163.8 liquidity...
Expecting CHF to appreciate over the next few sessions as GBP makes moves downwards/consolidates
Entry 1.2130, SL 1.2170
TP at break of 1.20 /psych level with a stretch target of 1.19
Expecting this pair to rise from this level to the recent double top.
The last high was on the back of brexit news since market has traded the wrong way to positive news.
Fairly simple retracement back to the top with a 3 to 1 risk/reward.
It may actually fall if it hits this top depending on US news and brexit deal impact settling in but all in all long term...
Looking to buy this going into tomorrow's session with expectations of a bullish week. Reasons:-
Last few sessions have given us a triple top formation at 141.2
Last 3 daily sessions green/up (3 soldiers pattern!) suggesting break potential
Higher lows/higher highs suggesting steam running out with sellers
Bullish trend/momentum going back to September low
JPY...
Potential short term long plan on GJ to break recent highs above which there would be stops/liquidity (>141.20) - JPY pairs looking up.
4-1 risk/reward
Entry 140.10
TP 141.85
SL 139.65
Expectation is that this pair will move up following a failed break lower.
There is a lot of selling pressure through the months and zooming out on the long term would expect some retracement back to break recent highs - back inside monthly wedge which coincides nicely with the last jump upwards.
Key question - now that Brexit deal has passed what is the reality for sterling?
Pre-news we saw a rally, post news we see price maintain the 1.36 level but future mid/long term direction too early to say and we will run into next year to find out whether cable has legs (or not).
In this plan, the scenario is that the deal gives a way out of EU but one with...
Expecting this pair to react at the lower trend line showing some upwards aggression following a long period of selling pressure. Given this is against the trend a low risk entry is needed.
Short plan continues as the upwards momentum seems to have slowed. Looking to sell at a double top or break of top around 1.37 handle, with some further confirmation at a 4:1 risk/reward.
Worth keeping USD basket in mind as if dollar continues to weaken then this plan may stall/track sideways - if USD recovers and we see GBP weaken this plan will hopefully work out well.
