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GBP/JPY Short Opportunity at 139.27

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 3/11/2010 7:01 PM EST (GMT -5) 4 Comments

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Bradley W. Gareiss

Technical Analyst, GFT

A bearish Gartley pattern is forming on the GBP/JPY 4hr Chart.  This pattern has nearly perfect price symmetry.  The trade would enter just above the 38.2% Fibonacci retracement on the Daily Chart as well.  Additionally, the trade would enter near the bearish trend line on the Daily Chart.  This is a a textbook trade that will be an ideal setup if the CD leg rises with roughly the same slope that AB has.

We are looking the sell the GBP/JPY if it rises to 139.27 (Point D).  Point D is located at the convergence of the following points:

We will now go over what to watch for assuming the pair continues rising towards our entry at 139.27.  First, we need to watch how quickly CD completes.  We are looking for the CD leg to rise slowly and enter the trade near where we have drawn the hypothetical entry.  If there are long bars near the completion of the CD leg, we will not take the trade.  Also, if the pair comes within 30 pips of reaching our entry, does not enter, and reaches 137.05 before entering, the trade is invalid.  The trade is also invalid if the pair falls below 133.65 before hitting our entry.

To recap, we will look to sell the GBP/JPY at 139.27 with our stop placed at 140.39.  Our initial profit target is 137.58 (38.2% of CD).

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  • Daily Chart - Trade would enter near bearish trend line and 38.2% Fibonacci retracement.
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  • 4hr Chart - Bearish Gartley; sell at 139.27.

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.

The views of the authors and analysts are not necessarily those of Global Forex Trading, its owners, officers, agents or other employees. FX360.com and the currency research team will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on FX360.com. Global Forex Trading and the currency research team do not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.

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Comments (4)

silver

March 12, 2010 at 01:55 PM ET

Is this trade a competition match with Rogers short of same pair? lol!!! To see whose pattern is going to be correct?

bgareiss

March 12, 2010 at 01:57 PM ET

It is the same pattern with slightly different entries and exits. It is my fault because I posted this without noticing Roger had previously used the same pattern. At least this is a good example of how different entries and exits will be used even by people using a very similar methodology.

Brad

silver

March 12, 2010 at 03:17 PM ET

I appreciate you professionals at FX360 I follow and read alot of different sites and you are the most accurate of them all in my opiion. Thanks TONS!!!!!

bgareiss

March 15, 2010 at 11:48 AM ET

I am glad you enjoy the site.

Brad

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