GBP JPY - Awaiting the critical selling point
Hello Traders and Analysts,
Breakdown:
1. Note
2. Contents
3. Research breakdown
4. Education recap
5. Information on Lupa.
A Note before reading - this is a forecast analysis - based upon our trading strategy. This is tagged short, due to purchasing further increments upon imbalances.
Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities. However, note - the overall trend is bullish, where the main trades are placed at 154.5X and 156X respectively .
Master Key for zones
July Analysis;
July 9th
May 4th
Here is the weekly imbalance below - where price has comfortably retraced from the monthly imbalance zone.
What does the imbalance show?
With the highs of 156.XX creating a needed retracement upon a pivot point - the monthly imbalance has been successfully filled.
From here using confirmations - shorts were placed to hedge and override long positions.
The weekly has created successfully - lower lows - meaning that price is looking to correct.
Previous analysis back in July - awaiting the next move to occur around 148.00 - 148.40 to £1.00
Scenario I
Using the Bullish scenario - where price will test the weekly imbalance between 151-148 - noting a opportunity to add longs from here.
Price has a fresh weekly zone - which is in this area. The pivot point will need to touch the imbalance and reject successfully.
Price will look to revert back to the 61.8% Fibonacci at 154.3 or extend back to 70.5% at 154.7X
Here is the current Weekly Scenario
This takes into account the movements where buyers took control of the correctional
See further for the before -0.618% Reversion price fractal found in the daily Imbalance.
Bearish scenario
Where price is rejecting the 156 - price can fall to a potential low - towards 141.
This is due to the heavy bullish imbalance which was established back in November 2020.
Price had created a reversion point - and from here the imbalance had tested the rising channel - creating a huge opportunity.
With imbalances - price can and will move back to retest the lower imbalance. Despite the overall *3month chart - producing a bullish consensus, the pattern can be a longer term buy.
Where price has a probability of breaking the weekly imbalance - the chance of the price continuing is likely.
Again this is using probabilities, to understand why this area is of interest, refer to the upload chart provided.
Be aware any reactive level offers volatility and an opportunity to add buy orders, sell orders to generate hedged net positions.
Below is a predictive pattern based on a line drawing, but is represented using the buying opportunity to the desired area of interest which lies ahead. [No pattern is perfect when analysed, however, with a fundamental stripped back as to how structure has left multiple clues at how the pair acts, price can offer a pathway to use as a guideline] - Hence, the forecast.
Cross correlations between GBP USD, XAU USD
The price chart here signifies what GBP USD is doing, where the dollar is correcting against the pound from an imbalance level at 1. 40 - price is now in a correctional phase, awaiting a buy move, therefore GBP JPY with a strong inverse, is also experiencing the same inverse phase.
It looks like the Sterling pairs are correcting and correlating, meanwhile XAU is whipsawing upon the 1775-1800 mark.
The correlation will vary between time frames, but in terms of the way the range works, this ignores noisy data on the lower time frames and highlights different imbalances which match up using the four day and weekly crossing of imbalances.
To see the inverse correlation (not causation) of two GBP pairs, both affected by the reactive levels taking place at the same time.
Please note* trading opposite correlated pairs upon a imbalance level is highly not advised due to 100% loss taking trades in opposite directions when price reverts against you.
The strategy should be implemented upon confirms.
Do you enjoy the setups?
*Professional analyst with 5+ years experience in the capital markets
*Focus on technical output not fundamentals
*Position and swing trades
*Provide updates where necessary - with new updated ideas tracking the progress.
If you like the idea, please leave a like or comment.
To all the followers, thank you for your continued support.
Thanks,
LVPA MMXXI
Breakdown:
1. Note
2. Contents
3. Research breakdown
4. Education recap
5. Information on Lupa.
A Note before reading - this is a forecast analysis - based upon our trading strategy. This is tagged short, due to purchasing further increments upon imbalances.
Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities. However, note - the overall trend is bullish, where the main trades are placed at 154.5X and 156X respectively .
Master Key for zones
- Red = Three Month
- Blue = Monthly
- Purple = weekly
- Scarlet [Red] - Four day
- Orange = Daily
- Green = 8 Hour, 16hour
- Grey = 4hour
- Pink = 1 hour
July Analysis;
July 9th
May 4th
Here is the weekly imbalance below - where price has comfortably retraced from the monthly imbalance zone.
What does the imbalance show?
With the highs of 156.XX creating a needed retracement upon a pivot point - the monthly imbalance has been successfully filled.
From here using confirmations - shorts were placed to hedge and override long positions.
The weekly has created successfully - lower lows - meaning that price is looking to correct.
Previous analysis back in July - awaiting the next move to occur around 148.00 - 148.40 to £1.00
Scenario I
Using the Bullish scenario - where price will test the weekly imbalance between 151-148 - noting a opportunity to add longs from here.
Price has a fresh weekly zone - which is in this area. The pivot point will need to touch the imbalance and reject successfully.
Price will look to revert back to the 61.8% Fibonacci at 154.3 or extend back to 70.5% at 154.7X
Here is the current Weekly Scenario
This takes into account the movements where buyers took control of the correctional
See further for the before -0.618% Reversion price fractal found in the daily Imbalance.
Bearish scenario
Where price is rejecting the 156 - price can fall to a potential low - towards 141.
This is due to the heavy bullish imbalance which was established back in November 2020.
Price had created a reversion point - and from here the imbalance had tested the rising channel - creating a huge opportunity.
With imbalances - price can and will move back to retest the lower imbalance. Despite the overall *3month chart - producing a bullish consensus, the pattern can be a longer term buy.
Where price has a probability of breaking the weekly imbalance - the chance of the price continuing is likely.
Again this is using probabilities, to understand why this area is of interest, refer to the upload chart provided.
Be aware any reactive level offers volatility and an opportunity to add buy orders, sell orders to generate hedged net positions.
Below is a predictive pattern based on a line drawing, but is represented using the buying opportunity to the desired area of interest which lies ahead. [No pattern is perfect when analysed, however, with a fundamental stripped back as to how structure has left multiple clues at how the pair acts, price can offer a pathway to use as a guideline] - Hence, the forecast.
Cross correlations between GBP USD, XAU USD
The price chart here signifies what GBP USD is doing, where the dollar is correcting against the pound from an imbalance level at 1. 40 - price is now in a correctional phase, awaiting a buy move, therefore GBP JPY with a strong inverse, is also experiencing the same inverse phase.
It looks like the Sterling pairs are correcting and correlating, meanwhile XAU is whipsawing upon the 1775-1800 mark.
The correlation will vary between time frames, but in terms of the way the range works, this ignores noisy data on the lower time frames and highlights different imbalances which match up using the four day and weekly crossing of imbalances.
To see the inverse correlation (not causation) of two GBP pairs, both affected by the reactive levels taking place at the same time.
Please note* trading opposite correlated pairs upon a imbalance level is highly not advised due to 100% loss taking trades in opposite directions when price reverts against you.
The strategy should be implemented upon confirms.
Do you enjoy the setups?
*Professional analyst with 5+ years experience in the capital markets
*Focus on technical output not fundamentals
*Position and swing trades
*Provide updates where necessary - with new updated ideas tracking the progress.
If you like the idea, please leave a like or comment.
To all the followers, thank you for your continued support.
Thanks,
LVPA MMXXI
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