GBP/JPY trading strategy - Buy/sell asset: SELL GBP/JPY
- Entry price: 190.800
- Stop loss: 191.728
- Leverage: 1x
- Take profit 1: 189.80
- Take profit 2: 189.00
- Take profit 3: 188.00
- Timeframe: 1-2 weeks
- Maximum profit: 1.5%
- Maximum loss: 0.5%
GBP/JPY has been in a bullish trend since January 2024 after the price made a double bottom around the 178.800 price level. Since then the price has made higher highs and gained 7.28%. However, the market structure seems to reversing as the price made a significant drop in the last two weeks and formed a bearish head and shoulder pattern.
The bearish head and shoulder pattern is a reversal pattern after which is mostly followed by a bearish trend. Currently, the price is retesting the 190.800 resistance level from where the price is likely to drop to new lows. Moreover, the price created long bearish candles when it dropped and created imbalances which further signifies that the price is likely to drop from this level.
I am considering the 190.800 resistance level for sell entry and my target for this trade is the 188.00 support level.
GBP/JPY fundamental analysisFundamentally, the price is likely to remain stable and follow the price action as there are fewer high-impact fundamental events that can have a significant impact on the price of GBP/JPY.
Great Britain pound to Japanese yen trade idea takeaways- GBP/JPY is likely to drop as the market structure has turned bearish.
- The price will probably drop to the 188.00 support in the coming days.
- Multiple take-profit levels have been added to secure profit along the way.
- The risk-to-reward ratio on this trade is 1:3.
- The entry and stop-loss prices have been placed at secure levels with the least probability of getting hit.
- Good luck!
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