After incurring 2 losses from our long positions, we will look for another buy at the daily and weekly support level.

- Market structure: Market structure on GBPJPY is bearish and we it has landed at the daily and weekly support level, which tend to be really strong. Earlier what happened was, GBPJPY dropped to the 150.50 levels and made a bullish correction, in a bearish trend. This support was later breached with the pressure of bears gaining control. Now, it is at 149.30 support level, the level at which we anticipate a correction upwards for at least 100 pips.

- Trendline: There are two trendlines in play on GBPJPY, or we can say, market is operating within a descending channel. The resistance tredline, which is also a descending trendline, needs to be tested. Unless it’s broken, there are not confirmations for buy continuation. Secondly, we have a support trendline, which is forming a bullish divergence on the price.

- Retracement: The golden retracement level of 75-78.6% aligns with the daily and weekly support and is at a price point of 149.20. This will be a high confluence region for GBPJPY to go long.

- EMA's: Both the EMA’s are bearish at the moment. The market broke both the EMA’s to the bearish side and have not yet retested them. Buying at this support, the EMA retest provides us a with a potential profit target.

- RSI/CCI: Both oscillators are hovering back in the neutral range after tapping their over-sold regions. On RSI, bullish divergence has appeared. On CCI, the divergence is vague. Having one divergence, in confluence with the weekly, daily support level, can be a strong indicator for market to surge.

After having 2 loss trades on GBPJPY, we will make another attempt to buy. The level is strong and we anticipate a correction, which seems due from the factors mentioned above. If this support is able to halt the bearish pressure, we may see GBPJPY continuing up.

Another GBPJPY buy position

Aug 20 2021

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