GBPJPY’s newfound down trend threatens for another leg down if the current rising wedge consolidation favors the sellers!

As a result, my July 26’s long trade has exited in loss after holding for 4 days and 17 hours:

https://www.finlogix.com/analysis/20240726/gbpjpy-intraday-analysis-and-trading-plan-for-july-26-2024

A new overall record of 2 wins and 4 losses.

There are 2 remaining high impact economic reports in the United Kingdom while none in Japan this week.

Re-assessing GBPJPY’s high timeframe candles:

Yearly Candle: Last check is a Green Body with a Longer Head Wick now a Green Long Upper Shadow

Monthly Candle: Previous close is a Red Body with a Longer Head Wick current is a Red Long Lower Shadow

Weekly Candle: Previous close is a Red Semi Dragonfly Doji current is a Green Shaven Bottom

Daily Candle: Previous close is a Green Long Upper Shadow with a Medium Body current is a Green Semi Long-Legged Doji

In today’s analysis, I’ll be referencing the swing high to low moves from July 11 to August 5 as the retracement points of view.

There are 2 weekly bearish FVGs that are currently holding up pretty well and the current consolidation pattern is a bearish one.

Rising wedge by default is a bearish pattern when found in a strong down trend.

In the case of GBPJPY, we can see a huge down wave already and the current relief rally may give a PoD soon that will be another drop.

PS: I also pointed out 2 red lines shown in the 4H chart above which are key lost levels that fueled the down wave more!

Good stop loss that I have set that saved me from a brutal huge loss!

For now, I like to capitalize GBPJPY’s weakness and will enter a premature short position at the current 4H candle targeting the take profit for a possible lower low but with a tight stop loss just a few pips above the 4H 100-SMA only.

Note: Finlogix pricing is set from the ACY Securities price feed, with liquidity being sourced by top tier banks via ACY Connect.

We’ll soon find out if I’m right again.

All trade ideas I share are my own views and for my own trades only.

GBPJPY Intraday Analysis and Trading Plan For August 14, 2024

Aug 14 2024

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