GBP/JPY Bearish Break-out on the Horizon ?!!
With Yesterday close 133.60 the pair breached below EMA 50 on daily chart and added strong negativity to the pair , the most thing that need to be watched yesterday's low 132.92 , we only need a daily close below this to support the bearish wave ?!!
Technically , Macd is below the zero line ( today candle ) , RSI bullish trend line was broken before 2 weeks ago , now the RSI forms new bearish trend line , the pair is moving below this trend line and below the 50 line (strong negativity )...BUT CCI is extremely over-sold , so it may push the pair up strongly toward EMA 50 to get rid of any positivity , and get ready to BREAK below the critical support 132.92...
Keep in mind , the support level 132.92 is valid as long as the daily close is below EMA 50 , a daily close above EMA 50 will range the market around 135.00 level and the support level 132.92 won't work any more ?
But a daily close below 132.92 is gonna attack Fibo 161.8 correction around 128.50 , then the pair's gonna range for awhile around 128.50 to take its breath, then our next target around 121.50 Fibo 261.8 correction is supposed to be achieved in less than 48 hours ?!!!
Recommendation :Upon the chart and the explanation posted above , my recommendation is selling the pair with a daily closing below 132.92 targeting 128.50 and 121.50 , stop loss at 135.30..
Best Regards
Wednesday 04 May 2011 10:17 AM
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Comment by Haitham653 on May 4, 2011 at 5:57pm -
Bearish Breakout at Asian Session ?!!
The pair breached below the support level 132.92 but it failed to close below it , even 15 min respected the support level and didn't close below it...
I've already have a short signal , at the last one hour close at 132.99 , so we may witness a bearish breakout later tonight at Asian session ....
A four hour close would accelerate the down move , but remember we still need a daily close below 132.92...to confirm the downtrend !!!
Regards
04 May 2011 05:57 PM
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Comment by Haitham653 on May 5, 2011 at 9:03am
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At the end of Asian session , this morning , we have a 4 hour close below the support level 132.92 at 132.72 , we only need the pair to stabilize below this level till the end of the day !!!
A daily close below it, it's gonna activate our trade and give the pair strong bearish momentum !!
Regards
05 May 2011 09:03 AM
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Comment by Haitham653 on May 5, 2011 at 3:29pm
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OOOOOOOOOOOPS!!!!
I can't believe it ?!!!!
I use 2 terminals for my trades...one of them is set with GMT time , the second one +3 GMT ...
All my charts here are set with GMT time ....today most of my trade was on +3 GMT account
Yesterday, GMT close was 132.88 a few pips below the support level132.92 , we should have sold the pair around this area ...we missed the daily signal ...I'm sorry....
Now we have to wait for a pullback and see what would happen ..?!!or trade the breakout below today's low .....
In all cases I'll wait for today close ...and if we have a good short setup ..I'll post it Immediately...
Regards
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Comment by Haitham653 on May 6, 2011 at 11:12am
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GBP/JPY now 131.75 06 May 2011 11:119 AM
Sell the pair around 132.80 S/L 134.30 T/P 128.50
Regards
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