Thanks to some unexpectedly positive data, Guppy found solid support yesterday and advanced up the charts.
U.K. jobless claims came in much better than anticipated, as the report showed that claims fell by 5,900 last month. It was projected that an additional 6,200 people would file for unemployment benefits. Furthermore, the unemployment rate trickled down from 8.1% to 8.0%. Boo yea, baby! I guess the Olympics did help a bit, eh?
This helped give the pound enough resilience to post new highs, and GBP/JPY eventually settled above 124.00. Unfortunately, GBP/JPY didn’t dip enough to trigger me at 123.00 and I missed the move. So much for catching a retracement!
In any case, I’ve canceled my orders since my trade idea is invalidated. I’ll still be looking for other setups to take and if I spot any, I’ll be sure to hit y’all up!
Thanks for the following everybody! Good luck trading the rest of the week!
Trade Closed: 2012-08-15 02:08
I was looking at my favorite pairs and I noticed that GBP/JPY has been on quite a rally. Now, I hate missing out on trends, so I locked my eye on this pair’s 1-hour chart, and guess what I saw? 3 reasons to buy the pair at 123.00! Lemme list ’em down for you:
- 123.00 is a major psychological handle (MaPs).
- It falls right in the middle of the correction zone/Fib territory.
- It was a solid resistance level in the past.
But what about fundamentals, Cyclopip?
Take a chill pill, bro! The way I see it, the markets don’t seem to be as risk-averse as they once were, and with the yen weakening across the boards, I think there’s a decent chance that buyers can hold GBP/JPY above 123.00.
Anyway, I set my orders this way:
Long GBP/JPY at 123.00, stop loss at 122.50, profit target at 124.00.
I placed my stop just below the WO and 61.8% Fib and I’m aiming for the next MaPs (124.00) for a potential return on risk of 2:1. Besides, I have a feeling price could edge above the long-term resistance level, as it has been forming higher lows. In any case, I’m only risking 0.50% of my account on this one.
So what do y’all think? Would you trade this setup?
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