The pair gave a really nice sell to the weekly trendline I mentioned in my post of 23 July and rewarded traders very well. The bullish pin bar on Wednesday was a brilliant example of a bull trap. Thursday’s close below 142.80 broke a 9 month wedge pattern and should take us to 138.60 that is a swing low of June and a swing high of Sept 2016.
The pair has fallen a lot, it’s somewhat overextended now and I will look for a retracement back to the 142.80/143.00 resistance area this coming week before taking another sell. Of course, there is always the possibility of no retracement or a smaller retracement given the volatility of this pair, so be cautious as this is a risk sensitive pair.

GBJPY WEEKLY - 13 AUG

Source: QUEEN OF POUND

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