GBPJPY Pre New York Analysis...
10/03/20… 1345hrs
ANALYSIS
Let’s look at the previous Daily candle close.
Daily Chart
The previous Daily candle closed bearish following the recent plunge of prices caused by major fundamental crisis involving the Covid-19 virus that has sent major currency and stock markets tumbling for the last few weeks.
H4 Chart
Today’s Asian session was bullish as you can see from the bullish candle formed at the time of the above screen shot. My bias for the pair today is still bearish since there is no positive news around the Corona virus global crisis. Therefore so long as we stay below the Resistance area 137.100, Sells would be valid and according to plan.
What trade did i take and why?
So, we have already identified the best possible trade that we could take Pre New York Session, and that is Rejection/Break of 137.100 Resistance area(labeled Major Resistance above).
Sell Entry
Recently, the market has been having huge pip ranges due to the fundamentals discussed above therefore i had to zoom in to M5 chart to catch the rejection with a good Risk:Reward Ratio.
There was a clear rejection(Double Top) of our major Resistance zone, therefore I took Sell positions with a 10pip Risk.
Price Tumbled all the way to 135.350, a 150pip move down. Clear Range Fill. I took profit at +20pips.
Check the full breakdown below.
The trade set up above was a Bearish Rejection from Daily Resistance.
So, what worked for this trade?
- Confirmation of a bearish rejection(Double Top). There was no significant break of resistance upward meaning no buyers at that moment.
- High probability of price Rejecting the Resistance area since it is a major area of supply.
- Trade was according to plan.
- Good Risk:Reward Ratio, 1:2.
…And we got paid for the day
