GBPJPY buys from current level of 151.10
Vasl Capital
GBPJPY·
Aug 30 2021
Stop Loss -0.61%
Holding time 11hr
150.798
Entry price
149.885
Stop loss price
4
GBPJPY has been in an uptrend making HH and HL's respectively. Actually, market is ranging between the 151- 151.30 arean. Right now, market is at the resistance level. The reason we are looking to buy at a resistance is the fact that market wasn't able to reject the zone with opening and closing below the resistance. Also, we have a price action depicting the bullish sentiment on the charts.
The 61.8% retracement level was tested earlier. We have two choices: either to jump on the bandwagon right now or wait for the market to retrace. If it doesn't retrace, we might miss out on it. The only reasonable retracement level is at 61.8% at 150.50, in align with the support level.
Two trendlines are in play. First one was an ascending trendline, which was broken out for sells. The validation on this breakout sell was stalled due to the fact it was not able to break the structure. Secondly, we have a descending trendline, at which GBPJPY is resting right now. Given the bullish structure, there is a high probability for the market to breakout for buys, which we anticipate as well.
EMA 50 was broken, and may be retested at the current region. EMA 200 is still bearish, being above the current market prices. Our anticipation is that market may break the EMA 200 as well and continue bullish.
The additional factor on the oscillators is that both of them are in the buying region. We have enough room for GBPJPY to accelerate up till the over-bought regions of the oscillators.
Conclusion: Bullish
Given the market sentiment, we are bullish on GBPJPY and will continue looking for buys. There are two options currently on the pair. Eitehr hop on the long positions right now with a wider stop loss or, wait for the market to retrace. If market breaks down the 150.50, we will liquidate our position.