Hello my dear friends This morning I will update the Live Trading Discussion and analyze the GBP/JPY currency pair, okay, go straight to the weekly time frame to see the market history last week. And as seen in the chart image below last week’s market history, the candle is in a bearish state with a fairly long tail at the top. This could be an indication that the seller is starting to exert selling pressure, so for next week we should be vigilant because there is a possibility that the GBP/JPY pair will enter a downward correction phase.
Daily Time Frame Analysis
In the daily time frame, it has also been seen that there are two bearish candles with a fairly large body size; it seems that at this time the seller has indeed started to enter and has the potential to move the price even lower. If later the price really moves down, I estimate that I will test the nearest support level, which is around 153.30. Even if this support level can be broken, there is a possibility that the price will drop even lower to the next strong support level.
H4 Time Frame Analysis
Entering the H4 time frame here, I see that from the previous market history there was a double top chart pattern, and it turned out that the market response was also quite good where after that there was a fairly significant price decline. Even as seen in the chart below, at the H4 time frame, a trend reversal pattern has occurred with the formation of a new lower low area, which is able to break out the higher low area from the previous bullish trend. With the formation of a trend reversal pattern on the H4 time frame, I am very optimistic that next week the GBP/JPY pair will most likely have the potential to experience a price decline.
Next Week’s Trading Plan
For next week, my trading plan on the GBP/JPY currency pair is more likely to choose a sell option, as explained in the technical analysis above, which is more likely to lead to a bearish trend.Sell Options-
options this time I will place a pending order in the nearest supply area at a price range of 157.06 and 157.40 with a SL distance of about 40 pips each and for rewards as usual at least 1:1 or can be placed at the nearest support level to hold position.
-Meanwhile, for the buy option, I am currently waiting and seeing at least until the price strengthening is able to breakout the resistance level or last week’s highest price.
Conclusion of Technical Analysis
Broadly, in the GBP/JPY pair, I see that there is already a potential trend reversal, meaning that the GJ pair has the opportunity to experience a downward correction with a fairly large target range, considering the distance of support is quite far. So for now, I tend to prefer short options for trading next week.