Big news in the week ahead for GBP and to go along with the bullish view I have of the GBP I am looking to long GBPJPY up to the monthly M4 pivot.
The daily chart below shows that price has retraced from the highs seen on the 2nd September and has bounced from a cluster of support.
- 135.000 psych level
- 38.2% fib level
- Daily 21 EMA
- Daily 50 SMA
- Previous structure support
Weekly Stochastics are pointing up from oversold territory and Daily MACD is rising with good angle and separation. You can also see that we have come to rest on the monthly M3 pivot point which also happens to be a previous support level and the daily low from 26/07/16.
The 4hr chart shows that price found strong support at the 200 EMA before wicking through to the 38.2% fib to collect buyers. Price has rallied and subsequently found support at the 55 EMA.
Moving average wise, the 21 is above the 55, the 55 is above the 100, and the 100 should soon cross above the 200 if this trend is to continue.
The 1Hr chart clearly shows the wick down to the 38.2% fib and D21 that is visible on the 4hr and Daily charts, and you can see that price rejected this level in a big way. A quick look at the oscillators shows RSI divergence, Stochastic divergence and MACD divergence, all signalling bullish intent.
Are you looking to long GBPJPY?