GBPJPY – D1
On the daily chart we can spot bearish trend. We can identify lower and lower tops and bottoms, we can differ corrections from impulses, averages have good shape, what suggests us opening short positions. We can see that after testing averages line bears have activated. Price set new high, which was just a false one and left only wick. Let’s take a look at trading chart.
GBPJPY – H4
On the trading chart we can see that price tested resistance area and after that bears have activated. Traders who waited for this area could open positions in half of it. Currently we can see that price is setting new bottoms and probably price is building support area, which can be use in the future to open short position. If the price will break support there will be good place to open position after re-test from bottom. Conservative scenario predicts taking position after candle signal. Do not risk more than 2% of your capital. Calculate volume of position correctly. Remember about correlations with other pairs, if there will be at least one correlation higher than 0.7 (or lower than -0.7), do not open this position.
