Here i've mapped out a potential scenario we can look out for on GBPJPY.
You can see on my chart i've marked the grey box at the top, we saw this pair ranging in this area for a little while before now giving us a clear break of the support and the bears coming in strongly.
The dotted line you can see is a monthly support level, which i've tightened up on the weekly to reflect more recent price action, this is a strong level and there hasn't been a monthly close below this since early 2017, with the level being respected multiple times since then.
The solid line at the bottom is the last daily support level which you can see gave us a big reaction the last time we tapped it.
I will be watching these two levels for potential longs on this pair, with excellent upside targets. Ofcourse you'll all be able to see the massive wick on the daily from the last touch of this area, so it's something to watch out for once we get down there, but we can look at proper entries on this when we get there.
And ofcourse there is plenty room to be taking shorts on this also, with a retest of the broken support from the grey consolidation area you could short this pair all the way down to the monthly/weekly/daily support levels! These levels may take days or weeks to be touched so set alerts and wait for price to get to your desired areas.
You can see on my chart i've marked the grey box at the top, we saw this pair ranging in this area for a little while before now giving us a clear break of the support and the bears coming in strongly.
The dotted line you can see is a monthly support level, which i've tightened up on the weekly to reflect more recent price action, this is a strong level and there hasn't been a monthly close below this since early 2017, with the level being respected multiple times since then.
The solid line at the bottom is the last daily support level which you can see gave us a big reaction the last time we tapped it.
I will be watching these two levels for potential longs on this pair, with excellent upside targets. Ofcourse you'll all be able to see the massive wick on the daily from the last touch of this area, so it's something to watch out for once we get down there, but we can look at proper entries on this when we get there.
And ofcourse there is plenty room to be taking shorts on this also, with a retest of the broken support from the grey consolidation area you could short this pair all the way down to the monthly/weekly/daily support levels! These levels may take days or weeks to be touched so set alerts and wait for price to get to your desired areas.