GBP/JPY potential short trade opportunity

November 08, 2023 03:09 AM PST | By Invezz

GBP/JPY potential short trade opportunity — Image source: Invezz

GBP/JPY trading strategy

Buy/sell asset: Sell GBP/JPY
Entry price: 184.994
Stop loss: 186.129
Leverage: 1x
Take profit 1: 184.00
Take profit 2: 182.00
Take profit 3: 181.037
Timeframe: 1-2 weeks
Maximum profit: 2.14%
Maximum loss: 0.61%

GBP/JPY chart and technical analysis

GBP/JPY recently retested the 185.928 major resistance level and the price was pushed downside from that level. I am expecting the price will drop further and will retest the 181.037 support level before breaking above the 185.928 resistance level.

The price is already making lower lows on shorter time frames, and the candles are also indicating a potential drop this week. However, the overall trend remains bullish on higher time frames i.e. daily and weekly.

I am expecting the price will climb up slightly and will retest the 184.994 resistance level before dropping. I am considering the same price for short entry and my target on this trade is the 181.037 support level.

GBP/JPY Fundamental analysis

There is no major news event today on either the Great Britain Pound or the Japanese Yen. However, tomorrow there is high-impact news on the Pound regarding GDP growth.

If the GDP growth rate is better than expected it will strengthen the Pound and if the GDP growth is lower than expected it will push the price of GBP/JPY down in our favor.

Pound to Yen trade idea takeaways

GBP/JPY is facing bearish pressure from the 185.928 resistance level.
The price will possibly drop to the 181.037 support level in the coming days.
Multiple take-profit levels have been added to secure profit along the way.
The risk-to-reward ratio on this trade is 1:3.9.
The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
Good luck!

The post GBP/JPY potential short trade opportunity appeared first on Invezz

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