123 pattern GBPJPY H1

Summary
1. Price was setting up an inverted head and shoulder on H1 though the 4H 21 pushed price down in Asia after negative GDP data was released out of Japan
2. Price moved down to role reversal MM3, a strong support level price has not broken through since the start of December, and formed a 123 on H1
3. Note the trend line providing resistance and the 21 below the 55 though also note the stochastic divergence
4. Should price break the resistance trend line bulls would look to buy the pull back after a higher high and a break of DM3. Bears are selling off the 21
5. Pound is weak and Yen has been strong against most pairs except the Kiwi with the GBP and USD the weakest against the Yen
If you are selling keep an eye on support at MM3 – if you are selling then it is probably a good idea to wait for a break of that support and trade the pullback

GBPJPY H1

1. Price was setting up an inverted head and shoulder on H1 though the 4H 21 pushed price down in Asia after negative GDP data was released out of Japan 2. Price moved down to role reversal MM3, a strong support level price has not broken through since the start of December, and formed a 123 on H1 3. Note the trend line providing resistance and the 21 below the 55 though also note the stochastic divergence 4. Should price break the resistance trend line bulls would look to buy the pull back after a higher high and a break of DM3. Bears are selling off the 21 5. Pound is weak and Yen has been strong against most pairs except the Kiwi with the GBP and USD the weakest against the Yen If you are selling keep an eye on support at MM3 - if you are selling then it is probably a good idea to wait for a break of that support and trade the pullback

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