Hello GBPJPY traders, I know that you are very much considering the Brexit and GBP movements.
We have found an interesting price movement. It is related to the GBPJPY currency pair. These days it is not good to trade any GBP currency pair. It is because of the Brexit summit and the news. So the price would change rapidly. But based on the technical analysis, we can still come to some predictions.
Let’s look at the daily chart.
The price had rotated around the support level at the bottom. Then it moved up. Using that information, we can draw a trend line together with that movement. So then the price has gone up passing passing that below red line of support. After that, it reached the upper red line of resistance and got rejected.
Then the price moved again downward and exactly hit our trend-line and reversed back upward. After that, the price tried to pass the above top red line of resistance but couldn’t.
So here we are now at a point where the price is rejected at the trend-line. You can clearly see a pin bar candle created below the trend-line.
So we expect that the price to go up again to the above resistance level. But the price will not stay at that level for long. Because the price was rejected many times at the above red line of resistance, we expect the price to go down. It means that the price will go up and down for many hours until it comes to a decision. Therefore there will be a small range in this week.
So it is not good to trade in a trend. But I think you can look for a trend breakout and trade.
When you trade this week, watch the Brexit news before entering any GBP trade. So it will help you a lot. Thanks for reading my analysis and I always expect your success.
I would like to have your valuable ideas in the comments section. Thanks.