All Trade Ideas and trading scenarios found on FX360.com are hypothetical. FX360.com has not placed these Ideas in a live trading environment. Forex Trading involves high risks, with the potential for substantial losses that exceed your initial deposit and is not suitable for all persons. Past performance is not necessarily indicative of futures results.

Solid GBP/JPY Sell Emerging...

Last updated 3/11/2010 1:18 PM EST (GMT -5) 6 Comments

• Share this:

FX360 Technical Analyst Staff

Technical Analyst, GFT

Should the GBP/JPY continue to rally off near-term double bottom support at 1.3390, a selling opportunity at 139.12 may present itself based on emerging 4hr bearish Gartley pattern projected to complete near the following convergence of fib resistance...

· 61.8% of XA

· 161.8% of BC

· AB=CD

· 38.2% of CD (daily)

As always, watch out for any gaps and/or wide-ranging candles (2-3x's average) prior to the projected entry as these are signs that a continuation move may be in progress. The stop-loss of 13982 is placed just above projected pattern completion while the profit target of 137.51 sits just above the 38.2% correction of the the 4hr CD leg. These reflect relatively conservative exits considering the GBP/JPY is coming off the longer-term bullish butterfly pattern as seen on the daily chart.

Potential strategy:  Sell if prices rally to 139.12 with stop-loss of 139.82 targeting 137.51.

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.

• Share this:

Comments (6)

silver

March 10, 2010 at 07:55 PM ET

Hey Roger, why would we not buy now for a 500+ pip profit?

BURST

March 10, 2010 at 08:02 PM ET

ye, if we start trading from C to D with tight stop which might be a good trade

silver

March 10, 2010 at 09:28 PM ET

Japan has announced currency intervention which sounds like it should help make this a very profitable trade and then short it to the downside at Rogers sell point D

rstojsic

March 11, 2010 at 09:48 AM ET

well, generally speaking there's really nothing in terms of probability that says this pattern WILL complete. rather, IF the pattern completes then there's a slightly higher probability of a temporary reversal due to the converging fib/pattern resistance. i agree that from a risk/reward stand point it makes sense, but it's a coin flip in terms of probabilities its a coin flip at best especially considering the rather strong bearish undertones (overall trend)

rstojsic

March 11, 2010 at 09:50 AM ET

this, of course, is speaking strictly from a technical standpoint. however, fundamental factors as silver has pointed out could very well dictate near term trend thus increasing the odds of this pattern completing making a buy of point C and target/reveral at D a valid strategy.

silver

March 11, 2010 at 10:40 AM ET

Thanks Roger. I appreciate your knowledge you share with all of us.

Add Your Comment

Please login to post a comment or sign up for an FX360® account.

Loading...