Our Trading Signal On GBPJPY – Is It Still Worth Taking? - Forex News by FX Leaders

Our Trading Signal On GBPJPY – Is It Still Worth Taking?

Posted Tuesday, November 21, 2017 by
Arslan Butt • 1 min read

Today, the market is trading sideways due to thin trading volume. Perhaps, it's due to Black Friday this week and lack of strong fundamentals today. Yet, the technical outlook of the Guppy seems to offer a sell entry.

 

GBPJPY – Downward Channel

It's been a few days, and the Guppy has stuck in a wide trading range due to lack of interesting fundamentals. Yet, technicals are offering us the compelling trade setup.

GBPJPY - 4 - Hour Chart - Bearish ChannelGBPJPY – 4-Hour Chart – Bearish Channel

We can see a downward channel on the 4-hour chart which is providing a solid resistance at 149.45/65. The pair has made its way towards the upper boundary of the channel and that's what is compelling me to enter a sell position.

 

In addition to the downward channel, the leading indicator RSI (98) is also complementing the selling trade. The potential support remains at 148.250.

Support     Resistance

148.02        149.62

147.02        150.22

146.42        151.22

Key Trading Level:    148.62

 

GBPJPY – Trading Plan

Considering the above indications, we opened a sell signal below 149.4 with a stop below 149.52 and a take profit of 148.82. Good luck and keep following for more updates!

 
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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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