A week of important central bank decisions has begun. Wednesday’s US Fed interest rate decision is undoubtedly at the forefront, but it is worth paying attention to the other events of the week which I listed on the telegram group.
Day after day, there will be data and information that can radically change trends and directions on currency pairs, indices and commodities such as gold or oil. In such a situation, I choose a cross for analysis, subject to less change than the major USD pairs. Today I took a look at the GBPJPY pair.
The GBPJPY pair is one of the more volatile ones and is said to be a favourite speculative instrument traded by large hedge funds or banks.
GBPJPY – is it time for a correction?
The weekly chart indicates the possibility of a downward correction. The price has reached a strong support and resistance (S/R) level. It has already served as support and resistance several times between 2013 and 2016. It seems that it can fulfill this role again and in 2023.
On the H4 chart an inside bar formation appeared on Friday, today the price broke out the top, but the price did not hold above the formation and quickly fell below creating a false breakout. This could be a sign of weakening demand. The MACD has entered a downward phase which reinforces the downward scenario.
LIVE EDUCATION SESSIONS
This WEEK (12-16 June) I am pleased to invite you to several online sessions. Below is the schedule of meetings:
The above analysis is based on the PA+MACD strategy, a detailed description of which you can read HERE . I will talk more about the PA+MACD strategy applied to these currency pairs during the live trading sessions which you can attend from Monday to Friday.
More current analysis on the group : Trade with Dargo