GBPJPY with a clean bearish setup
|Monday starts for us with the analysis of the GBPJPY, so an instrument that is beloved by the retail traders. They mostly praise its volatility, which can bring fast wins but in the same time fast loses. Setup here is very clean and has a high chance of success.
The pair was in the sideways trend since the 20th of September. Was, as on Friday we got the breakout and today, this movement is continued. That brings us a legitimate sell signal. To be precise, the negative sentiment is based on the fact, that the price broke 4 (four!) important supports. First one is the horizontal one (orange), so a 23,6% Fibonacci. Then, we have black and green lines, which are the lower lines of the sideways trend (triangle, depending of what lows will you connect). Last one is the long-term up trendline connecting higher lows since August. Second half of the European session brings us a small reversal but it can be considered as a typical pull-back.
Price being below all those levels is a proper sign to go short and as long as that is the case here, we are negative.
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