Swing Trade Setup in GBPJPY – Are you ready to make +200 Pips?
Arslan Butt • 1 min read
The Guppy is trending upward very nicely, making a bullish move of more than 300 pips just in two trading days. Our forex trading signal bagged most of it. Now, I'm looking for another 200 pips trades in it. Are you up for it?
Two Reasons Behind Bullish GBPJPY
FX junkies are wondering the reasons behind this huge bullish wave in the GBPJPY. Well, there are two reasons for this.
Firstly, the U.K Consumer Prices Index rose by 2.9% in August 2017 up from 2.6% in July 2017. It definitely will pressure the Bank of England to hike the interest rates like the Bank of Canada and Federal Reserve.
Secondly, the geopolitical tensions between North Korea and the United States are easing as there is no update fueling the safe haven demand. In response, the investors are shifting towards risky investments like stocks and forex.
Technical View – W Pattern
On the daily time frame, the GBPJPY has formed a double top at $147.600, and it's heading in the same direction. The pair testing the same level again will make it a triple top pattern or a W pattern.
GBPJPY – Daily Chart – Triple Top
The Stochastic & RSI is holding at 100 in the daily chart encouraging buyers to take profit. Sellers may enter the market to take advantage of overprices currency pair.
GBP/JPY – Trading Plan
The idea is to stay in selling below $147.550 with a stop below $148 to target the $145 and $144.65. Good luck.