We have continued to see upside momentum with the pound starting early this week. This pair has come off the 50% fib retracment from it’s previous bullish move, and I plan to look for an entry on the lower frames, to catch the next upside wave. We are still awaiting a verdict on the article 50 from the British supreme court tomorrow, however investors have perceived Pm May’s words from last week to have provided some clarity on Brexit’s outcome, and thus for the time being I am bullish on the pound.

GBP/JPY Daily chart

Price has come off the 50% fib, which is also role reversal support, shown in green. The daily stochs are to the upside and 8 and 5 ema's have also.

GBP/JPY H4 chart

Price has been making a series of higher highs and lows, shown by the black lines. I have shown two possible levels of support, where I may look to enter. these levels are role reversal support, shown in green, they are also fib retracement levels. furthermore the 21 and 55 ma's have crossed to the upside, indicating a change in trend. I would like to see price come down a little lower, preferably to WPP, as the risk to reward is higher, and will target bull profit taking zone between WM4 and WR1

GBPJPYiH1-23rd-jan

Price has found current support at the 38.3 fib level, which is also dm1-ds1, a bullish entry zone. I will wait for a pull back, and look for an entry on the m5 chart, and will wait for the oversold hourly stochs to cross to the upside.

One thought on “GBP/JPY Daily long”

  1. Maryna says:

    Hi Dominic, my thoughts are that the more significant test for buyers lies above current levels at 142.50. This area has served as a key level for the pair since July of last year.
    It’s also the 50% Fibonacci retracement when measuring from the December 2016 high at 148.44 to the current 2017 low at 136.44.
    If we get a daily close above 142.50, there’s a good chance the GBPJPY will move back toward those December highs near 148.00. Alternatively, a move lower would likely encounter support near the 138.80 handle.

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