GBPJPY Buying Opportunities To 169.00
Tues 28th February 2023 : Daily Currency Strength Analysis
In Today’s Video we’re looking at Trading Setups in:
- GBPJPY
- GBPAUD (Covered in Video)
GBPJPY Buying Opportunities To 169.00
In today’s forex strength video we identified that the Great British Pound (GBP) is the strongest currency.
The Japanese Yen (JPY) remains a weak currency, offering us opportunities to potentially buy GBPJPY.
GBPJPY has been trading within a range between the highs of 162.00 and lows of 156.00.
Recently price has broken out of the highs of the range and retested it as support.
Now price is trading higher and above the daily 200 moving average we can look for long opportunities.
Buyers will be targeting the highs of 166.00 and 169.00.
Traders could wait for the price to pullback into the supporting highs of 163.50 and daily 200 moving average for a buying opportunity.
Technical Observations
- The GBP is S1 and JPY is W2 on the day traders table.
- Price has traded through the range highs of 162.00.
- Price is currently above the daily 200 moving average.
- Buyers will be targeting the 166.00 and 169.00 highs.
- A retest of the highs at 163.50 could offer buying opportunities.
Hi, i’m practicing on a demo account if I’m placing a short downwards trade on AUD/USD from yesterday to 0.6650
what would you recommend for a stop loss if i put the 0.6650?
also am i putting a buy limit or sell stop? or am i just putting it on the SL – TP
Thanks
Hi Jennifer
We’ve had AUDUSD on our radar for some time now with an eye to shorting into 0.6650 support.
We’re currently standing circa 0.6730, so only 80 pips away. This can make late entry and safe stop loss placement difficult.
If I were looking to enter short at this stage I would consider the following:
• A Sell Limit Order circa 0.6750 (Hourly chart, 38% Fibonacci retracement
• A S/L circa 0.6800 (200 Daily Moving Average)
• A T/P circa 0.6650
The above would give me the 1:3 Risk to Reward Ratio I look for.
Just watch out for any sudden upside momentum as the market may wish to test the 200 Daly moving average around your s/l.
Hope that helps.
Charles