GBPJPY Analysis Nov 4,2015

It very hard to find some major currency pair that has a good trading opportunity since most USD pairs are being bullied by the dollar. They are mostly on the move already due to the dollar strength. If we want to enter the market in a good position, the currency needs to retrace a little bit first. So I was checking out GBPJPY this time.

GBPJPY Daily Time Frame

Looking at the daily time frame, we can see that the pair is going up recently and is approaching a resistance zone. Looking also at the size of the daily bullish candle sticks, they are really not that powerful of an upward move. It is just moving upward tiny steps at a time. But if you check the bearish Oct 27, 2015 candle, the currency can drop significantly anytime. I believe that the pair is going to retrace back to the bullish trend line first and then bounce up to continue its upward move some time soon.

GBPJPY 4HR Time Frame

If you look at the 4hr time frame, we can see that there is a bearish bat pattern forming and could possibly back up my analysis in the daily time frame. Unfortunately GBP currency pairs tend to have a huge pip movement and that X leg of the bat pattern is still around 800 pips away. That is more than my risk capabilities. I will be checking the lower time frame on this pair to see if I can find a bearish entry and have lower risk than this setup.

 

AUDUSD 1HR Time Frame

Just a quick update on my AUDUSD pending order done here. The order was triggered and with the three possible resistances I mentioned when pending on this trade, the daily bearish trend line was the one who was able to stop the price from going up! I just hope this trade will break my four trade losing streak! Currently I am up around 40 pips on this trade. I am half way there on my take profit! Hopefully soon, this trade will close on a profit!

Good luck in trading guys!