However, I told y’all back then that the pair needs to clear 1.2390 before the downside breakout is confirmed. Otherwise, chances are good that the breakout would end up being a fakeout. And as it turns out, the pair didn’t even get close to 1.2390, and so the breakout did end up as a fakeout.
Anyhow, if we take the most recent price action into account, we can see that another somewhat symmetrical triangle has formed. And as y’all should know by now, a symmetrical triangle could break in either direction, so y’all may wanna prepare for both scenarios.
And similar to our old triangle pattern, just keep in the mind that a downside breakout needs to clear 1.2390 on strong bearish momentum before the breakout is confirmed. An upside breakout, meanwhile, still needs to smash past 1.2610. In any case, just make sure to practice proper risk management, a’ight?
It’s been a while since we looked to GBP/JPY for short-term setups. But if you’re lookin’ for something more fresh, then check out that there descending channel.
As y’all can see, the pair has been steadily trending lower while more or less contained in that there descending channel. And presently, the pair is making its way back up to the channel’s resistance area. Y’all therefore better start lookin’ for opportunities to go short on the pair.
Do note, however, that stochastic is about to reach overbought territory already. In addition, the pair is about to reach the 138.90 handle, which happens to be a price area with significant market interest. There’s therefore a good chance that the pair may find sellers there instead of at the channel’s resistance area.
And while an upside channel breakout is highly unlikely at this point, just keep in mind that if an upside breakout does occur and the pair clears 140.50, then y’all may wanna bail yo shorts or even switch bias. Know what I’m sayin?
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.