GBP/JPY Trading Strategy – Short to Target 185
I. Technical Analysis
1. Overall Trend
On the H4 timeframe, GBP/JPY remains in a downtrend, as indicated by:
Lower highs and lower lows.
Price trading below both the EMA 50 & EMA 200, confirming bearish momentum.
A weak pullback formation, suggesting a continuation of the downtrend.
On the D1 timeframe, GBP/JPY is moving within a descending channel, encountering resistance around 191.4 - 192.8 (previous swing high and descending trendline).
2. Key Resistance & Support Levels
✅ Strong Resistance (Sell Zone):
190.2 - 191.45: Confluence of the descending trendline + EMA 50 on H4.
192.8: Major resistance level and a logical Stop Loss placement.
✅ Target Support (Take Profit):
185.2 - 185.0: A strong support zone from the previous low.
✅ Indicators Confirmation:
Decreasing volume on price pullback, indicating weakening bullish momentum.
RSI below 50, not yet oversold, leaving room for further downside movement.
II. Trading Strategy
1. Entry Points
Sell GBP/JPY around 190.2 - 191.45 upon price testing resistance.
Consider splitting the order:
Sell 50% at 190.2
Sell remaining 50% at 191.45 (if price continues upward).
2. Stop Loss (SL)
192.8: A break above this level invalidates the bearish setup.
3. Take Profit (TP)
TP1: 187.0 → Close 50% of the position and move SL to breakeven.
TP2: 185.2 - 185.0 → Fully close the trade.
4. Risk/Reward Ratio (R:R)
Average Entry: 190.8
SL: 192.8 (-2.0 pips)
TP: 185.2 (+5.6 pips)
R:R = 2.8:1 → Reward is 2.8 times the risk, making this an attractive swing trade setup.
III. Risk Management & Market Scenarios
🔸 If Price Moves in Favor
✅ Upon reaching 187.0, move SL to breakeven, ensuring no risk exposure.
🔸 If Price Hits 192.8
❌ Exit the trade entirely, as the bearish structure is broken.
🔸 Key Observations
⚠️ If price aggressively rises to 191.45 with strong volume, wait for bearish confirmation before entering.
IV. Conclusion of me
Short GBP/JPY at 190.2 - 191.45, TP at 185.2 - 185.0, SL at 192.8.
Strong R:R ratio (2.8:1), suitable for swing trading.
Expected Holding Period: Until mid-week, closely monitoring price action.
Follow me now, good luck evrybody!
1. Overall Trend
On the H4 timeframe, GBP/JPY remains in a downtrend, as indicated by:
Lower highs and lower lows.
Price trading below both the EMA 50 & EMA 200, confirming bearish momentum.
A weak pullback formation, suggesting a continuation of the downtrend.
On the D1 timeframe, GBP/JPY is moving within a descending channel, encountering resistance around 191.4 - 192.8 (previous swing high and descending trendline).
2. Key Resistance & Support Levels
✅ Strong Resistance (Sell Zone):
190.2 - 191.45: Confluence of the descending trendline + EMA 50 on H4.
192.8: Major resistance level and a logical Stop Loss placement.
✅ Target Support (Take Profit):
185.2 - 185.0: A strong support zone from the previous low.
✅ Indicators Confirmation:
Decreasing volume on price pullback, indicating weakening bullish momentum.
RSI below 50, not yet oversold, leaving room for further downside movement.
II. Trading Strategy
1. Entry Points
Sell GBP/JPY around 190.2 - 191.45 upon price testing resistance.
Consider splitting the order:
Sell 50% at 190.2
Sell remaining 50% at 191.45 (if price continues upward).
2. Stop Loss (SL)
192.8: A break above this level invalidates the bearish setup.
3. Take Profit (TP)
TP1: 187.0 → Close 50% of the position and move SL to breakeven.
TP2: 185.2 - 185.0 → Fully close the trade.
4. Risk/Reward Ratio (R:R)
Average Entry: 190.8
SL: 192.8 (-2.0 pips)
TP: 185.2 (+5.6 pips)
R:R = 2.8:1 → Reward is 2.8 times the risk, making this an attractive swing trade setup.
III. Risk Management & Market Scenarios
🔸 If Price Moves in Favor
✅ Upon reaching 187.0, move SL to breakeven, ensuring no risk exposure.
🔸 If Price Hits 192.8
❌ Exit the trade entirely, as the bearish structure is broken.
🔸 Key Observations
⚠️ If price aggressively rises to 191.45 with strong volume, wait for bearish confirmation before entering.
IV. Conclusion of me
Short GBP/JPY at 190.2 - 191.45, TP at 185.2 - 185.0, SL at 192.8.
Strong R:R ratio (2.8:1), suitable for swing trading.
Expected Holding Period: Until mid-week, closely monitoring price action.
Follow me now, good luck evrybody!
منشورات ذات صلة
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.
منشورات ذات صلة
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.