Trade Update: GBP/JPY Stops To Break Even

Last updated 3/17/2010 10:26 AM EST (GMT -5) 1 Comments

FX360 Technical Analyst Staff

Technical Analyst, GFT

Late last week, a GBP/JPY selling opportunity was highlighted (see " Solid GBP/JPY Sell Emerging ") based on an emerging bearish Gartley, which has now come to fruition triggering the current short at 139.12. Since last posted, a secondary/confirmatory bearish AB=CD pattern developed within the projected CD leg. Although this adds an additional layer of strength to resistance (in addition to the 38.2% on daily), the surge into pattern completion is a bit of a concern in terms of momentum. Now that prices have dipped about 40-50 pips more conservative traders may look to take profits and run, but considering the amount of converging resistance moving stops to break-even is a good idea  regardless of  risk tolerance. The next near-term test in terms of minor support comes in around 138.25 in which case stops maybe adjusted in order to lock in some profit, but for the time being initial target remains at 137.51.

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Comments (1)

tenayuca

March 18, 2010 at 04:48 AM ET

GREAT TRADE. THANK YOU.

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