GBPJPY Bearish Retest| 200DMA| .50 Fibonacci| Support Confluence

5 сент. 2020 г.

Evening Traders,

Today’s analysis – GBPJPY – putting in a bearish retest, price is to test support, the next technical trade location.

Points to consider,
- Trend bearish retest (Daily S/R)
- Support confluence (.50 Fibonacci & 200DMA)
- Oscillators diverging
- Volume below average

GBPJPY has had an initial rejection from its Daily S/R, putting in a bearish retest. This allows us to have a bearish directional bias.

The local support area has technical confluence (.50 Fibonacci & 200 DMA); price is likely to respect this area leading into a bounce.

Both oscillators are diverging from price (double bearish divergence), this indicates weakness in the market as price struggles to close above Daily S/R.

Volume is currently trading below average; an influx is likely to occur at support confluence as this is the next trade location.

Overall, in my opinion, any rallies are to be sold into for a short play. Price action is to be used upon management/ discretion of trade.

Hope this analysis helps!

Thank you for following my work!

And remember,

“Fear, inherently, is not meant to limit you. Fear is the brain’s way of saying that there is something important for you to overcome.”
― Yvan Byeajee