GBP/JPY DOUBLE TOP FORMING ON 1HR TIME FRAME?GBP/JPY IS APPROACHING SIGNIFICANT RESISTANCE AT 194.59, OFFERING A LOW RISK SHORT TRADE AS A DOUBLE TOP MAY POTENTIALLY FORM.
PRICE ACTION PREVIOUSLY SUGGESTED THE 194.59 LEVEL WAS PROTECTED BY SELLERS, A REJECTION OF R1 AGAIN EXPOSES THE DOWNSIDE OF 190.97 (S1) - A BREAK OF THE SHORT TERM TRENDLINE THAT HAS FORMED WOULD ADD EXTRA CONFIRMATION OF FURTHER SELLING.
S1 OFFERS A GOOD PROFIT TAKING AREA AS IT IS THE 0.382 RETRACE OF THE ORIGINAL 185.00 (S3) SWING LOW AND THE 194.50 SWING HIGH (R1), A BREAK OF THIS LEVEL WOULD EXPOSE 189.20's.
THE 150 DAY MA HAS BEEN ACTING AS SHORT TERM SUPPORT FOR THE PAIR, A BREAK OF THE 150 MA, AND A CROSSOVER OF THE MA'S WOULD ADD FURTHER CONFIRMATION OF SHORT TERM SELLING. CURRENTLY THE SHORT TERM 16 DAY MA IS POINTING TO THE DOWNSIDE.
ORDERS ARE BEST PLACED JUST BELOW R1 AT 194.41, IF PRICE REVERSES PRIOR TO THIS LEVEL ENTRIES CAN BE MOVED TO THE AREA OF THE TRENDLINE BREAK - STOPS CAN REMAIN ABOVE R1.
SAFE TRADING.
