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FXTimes: Daily Technical Update GBP/JPY: Bullish Gartley at 38.2% Retracement
GBP/JPY: Bullish Gartley at 38.2% Retracement
- 4H: The GBP/JPY market started this week with a reversal signal after briefly breaking above 144 to test 144.50. (Refer to Daily Technical Update 4.6.2010: GBP/JPY). In the 4H time-frame, we see this reversal now testing a near-term rising support at 141.10.
- 141.10 is also the 38.2% retracement area. The decline was also in an abcd retracement pattern.
- Still, the market is bearish in the near-term and if it breaks
below the current support and 38.2% retracement, it may continue in the
near-term to 138.50 area (61.8% retracement and intermediate rising
- Daily: The daily time-frame shows the bullish
continuation scenario for a swing either to start now, or further down
from near the 139/138.50 area.
- This time-frame also shows that the market is bearish with some
recent bullish attempts. That suggests, we should follow the bearish
- I think we should have the bearish scenario open, but the bullish
scenario is what price action is calling in the short-intermediate term.
- What we can do is to stalk the current bearish attempt to see if a
bullish attempt can follow. Then see if that bullish attempt is
indicative of an impulse or corrective move.
- 1H: The 1H time-frame shows the recent bearish
attempt. I noted in here that there was a bullish corrective move
between 2 downswings in the form of a bearish gartley. If there is
bottoming action and a rally to break the near-term declining
resistance, we should watch for the shape of the rally.
- That rally should have a near-term projection to around 142.50 or
the channel resistance. A break of that is a bullish continuation
signal for the intermeidate term.
- However, topping action near channel resistance especially after a 2-legged attempt would suggest further channeling downwards.
Commodity Trading Advisor
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All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
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