Hello Traders,
GBP is lying at a very precarious point as I type this and even though we all know that GBP has been on a recovery trail after 2016 Brexit, at the moment, it’s a cliff hanger. Like EURJPY which is now bearish and likely to move lower in the coming sessions, GBP seems to be following the same cue.
In the weekly chart we notice that prices are actually at key support line and even if last week ended bullish, the long lower wick which it closed with hints of strong sell pressure. All that is needed is a confirmation of those bears in the course of the week and a simple nudge below 147.50 might usher in sellers. Then again, as expected, there hasn’t been much action even after that strong bearish engulfing candlestick by week ending February 9. The good thing is prices are still below the middle BB and that should act as our immediate resistance line.
In the daily chart, stochastics are at the oversold territory and that might explain buyers who have been pushing prices higher after February 14 pin bar. Besides, we can see that gap up when prices opened this week. Now, that is not a problem and all we need to see is a reaction. It can be two way: Either a bounce off support or a surge and close below $148 and 147 in the coming days. If that is the case then we can trade a bear break out which is even clear in the weekly chart.
Before then though, I expect to find resistance anywhere between 150 and 151 which happens to be around last week’s highs. If there is any bear candlestick that prints at that zone, then we can short, place a stop loss above 151 and aim for 146 or there about as our first profit level.
This is how we shall trade:
Sell Limit: 150-151
Stop Loss: above 151
Take Profit: 146 and below

Have a good trading day. Let me know what you think.

gbpjpy daily chart for February 26, 2018

Source: Dalmas

gbpjpy weekly chart for February 26, 2018

Source: Dalmas

3 thoughts on “GBPJPY Analysis for February 26, 2018”

  1. Joe Z says:

    Hi Dalmas! I also am bearish on the Yen pairs, including GBPJPY. But I’ve stayed away from selling these pairs because they have already reached the lower monthly pivot points. GBPJPY has already reached the monthly take profit zone:

    I would still like to sell GBPJPY this week. So I am looking at the new weekly pivot points:

    I’m ready to sell if the price is rejected at 150.10 and makes that 1-2-3 reversal pattern. I won’t sell at any price higher than 150.10, because my fear is that the weekly bears aren’t interested in selling, and the bigger bulls won’t sell until next month. Good luck and cheers!

    1. Dalmas Ngetich - FOREX.TODAY says:

      Hey man, sorry didn’t even see this earlier. Yeah, I hope you got that bear break out candlestick. I was also waiting for higher highs in lower time frames knowing that the higher charts-weekly chart in the case-were at a drop off position. Today might not be that rapid but any retracement is another selling point. The same applies to all Yen pairs.

  2. Joe Z says:

    Above, I meant to write “the bigger bears won’t sell until next month”.

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