And Breathe…
2 Days Of Calm, Then We Continue ?
Mon 19th June 2023 : Daily Forex Price Action
Today we’re looking at Trading Setups in:
- GBPJPY (Primary Focus Pair)
- AUDJPY (Covered In Video)
- GBPUSD (Covered In Video)
Primary Focus Pair: Trade Plan & Details
Details:
We featured GBPJPY in every post last week as it featured on our live forex strength vs weakness tables frequently.
In those posts we discussed the idea that price would find support at 174.50 and 175.00.
If you had taken action at these levels, price rallied over 700+ pips to the highs of 182.00.
Fundamentally, Bank of England Governor Bailey stated that interest rates could reach as high as 5.75%.
With rates currently at 4.50%, the market bought into the comments and is now pricing in significant rate rises from the BoE.
On the weekly chart we can see price is trading above previous resistance which was formed by the lows on 13th September 2015 at 180.75.
This level could act as support for traders looking to get long in this market.
The next level of resistance on the weekly time frame is up at 188.00, which was a right shoulder of a head and shoulders pattern.
This means if this sentiment continues we could expect the price to trade another 700-800 pips higher.
On the hourly chart price formed a high at the 180.75 resistance, this could be used as support as it holds confluence with a 50 moving average and a trend line.
Traders could go long here using ATR stop losses between 90-150 pips.
