Trade Idea: GBPJPY Breaks wedge Pattern
Important note on charts:
It’s imperative to your trading success, you are trading with a broker that offers “New York Close Forex Charts” where each daily candle opens and closes at 5 pm EST. This is essential with trading price action correctly.
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All my trade setups provided, is not advice or a recommendation to trade or invest. It is solely for educational and general information only.
Don’t blindly buy or sell the Forex markets discussed in this trade setup. Do your own research and always be aware of the risks and rewards.
Potential Trade Setup: GBPJPY Breaks Into Free Space Out Of A Wedge Pattern
All charts I provide are of the Daily time frame unless stated otherwise.
Trend: Very Bearish
Key Levels: Broken support at the 143.79 area with expecting this to hold as a new resistance. Next support sits at the 141.12 area for a target.
Price Action Signal: Awaiting a retest of the broken key level with a price action signal
Chart Notes: The GBPJPY Breaks Into Free Space with breaking out of a weekly wedge.
With a strong bearish bias now intact and currently waiting for a retrace back into the broken structure level.
Potential Trade Idea:
I am considering selling this pair if the broken key level of 143.79 now holds as a new resistance.
I will be looking for a strong bounce of this key level with a nice bearish reversal candlestick pattern.
As you will notice from the chart below, the GBPJPY had been in a long time sideways wedge, now with a large momentum breakout.
This setup has plenty of free space, giving the trade room to head lower into the next support for a target.
I can’t stress enough here, that patient and discipline is the key to any successful trader.
Now is your turn:
How are you planning this setup? What are you looking for to catch the next bearish move with this pair? Just leave any question or comments below.
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