GBPJPY produced a huge Bullish Engulfing H4 candle at a significant level of Support yesterday. Today’s price action has been bullish as well. There is a strong level of Resistance nearby. If that level gets broken by an H4 candle, then we might get an opportunity to take a long entry. Let us have a look at the H4 GBPJPY chart.
GBPJPY Price Action Analysis – 16th Oct 2018
The level of 146.860 is the Intraday support here. On the other hand, 147.400 is the level of Resistance, which has to be broken. Today’s first H4 candle came out as a Bullish Engulfing candle. The next H4 candle came out as a Bullish candle as well. If the current candle makes a breakout at the level of 147.400, then we would have to wait for a little correction up to the breakout level and an H1 Bullish Engulfing candle right at the breakout level to take the long entry. Let us have a look at the summary of the trade…
- Buy Stop Order: 147.400
- Stop Loss: 146.860
- Take Profit: 148.250
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
The GBP has a High impact news event today at GMT 09.30. I assume the GBPJPY pair would make the breakout before the news event and might produce the signal right after the news event hour. If the signal comes before the news event, we might as well skip taking the entry. However, it would be safe to take the entry at any time as long as it comes after the news event.
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