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GBP/JPY Could Face Support at 148.03

The information, including Commentary and Trade Ideas, provided on FX360.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. Global Forex Trading and FX360 .com is merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. Any projections or views of the market provided by FX360.com may not prove to be accurate.

Last updated 11/10/2009 7:29 PM EST (GMT -5) 2 Comments

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Bradley W. Gareiss

Technical Analyst, GFT

A bullish Gartley pattern is forming the GBP/JPY 2hr Chart below.  The pattern has excellent symmetry in price, although time symmetry remains to be seen.  The trade would also enter near a fairly strong bullish trend line on the 8hr Chart if it continue to fall as drawn.  This is a textbook Gartley pattern that would be a high probability trade if it completes.

We are looking to buy the GBP/JPY if the pair falls to 148.03 (Point D).  Point D is located at the convergence of the following levels:

We will now go over what to watch for assuming the GBP/JPY continues falling toward our entry at 148.03.  If the pair moves down rapidly and has long bars near point D, we will not enter the trade.  Also, if the pair comes within 10 pips of reaching our entry, does not enter, and reaches T1 before entering, the trade is invalid.  The trade is also invalid if the pair rises above 150.85 before hitting our entry.

To recap, we will look to buy the GBP/JPY at 148.03 with our stop placed at 147.43.  Our initial profit targets are 148.92 (38.2% of CD) and 149.61 (61.8% of CD).

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  • 8hr Chart - Trade would enter near bullish trend line.
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  • 2hr Chart - Bullish Gartley; buy at 148.03

The information, including Commentary and Trade Ideas, provided on FX360.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. Global Forex Trading and FX360 .com is merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. Any projections or views of the market provided by FX360.com may not prove to be accurate.

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Comments (2)

pp22

November 11, 2009 at 02:31 PM ET

Hi Brad
I wanted to just verify that this trade recomendation GBP/JPY was invalidated along with your GBP/USD quicky from last night and the USD/JPY from the 6th was also invalidated?

Thanks

Phil

bgareiss

November 11, 2009 at 02:56 PM ET

That is all correct. Great job keeping track of invalidated trades, that is a pretty big key to being profitable. We will probably redraw some of these setups, but they are invalidated as currently drawn. Brad

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