Week just finished, so it is good that we check how weekly candle closed. We can see that we got nice bearish outside bar.

gbpjpy-w

Weekly outside bars are very powerful signals and they don’t fail many times.

There are two possible short entries, first, that you enter at the low of the weekly outside bar. This entry will need a bit bigger stop loss.

Second short entry is, that you wait for a retrace on weekly outside bar. Best is to pull Fibonacci on weekly outside bar and look for snaps between 38.2 and 61.8 % Fibonacci retracement. With this second option, stop loss could be smaller, but more patience is desired.

Looking 4h chart with placed Fibonacci on weekly outside bar, we can see that most sense it make to wait somewhere between 38.2 and 61.8 % Fibonacci retrace.

gbpjpy-4h

There at 38.2% we have WS1, which could act at a resistance, then a bit higher is also 200 EMA, a bit higher we already have role reversal area and last there is 61.8% and WPP. Pay attention that weekly pivots will be changed when on Sunday evening (in Europe) markets will re-open again.

So based on this weeks candle, our bias on GBPJPY is bearish, but we need to first wait for a retrace to get better entry, so we will have smaller stop loss.

There is no red UK, neither JP news on Monday.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.