GBPJPY Could Reach 125.36 Next Week

The pair dropped further this week, although it failed to reach 38.2% level  at 127.27 as I suggested on my previous post. The good news is I believe that the correction phase is not over yet. The 23.6% level at 129.64, which acted as resistance this week remain unbroken on daily time frame, despite of several movements above it on Monday and Tuesday. In fact, the week low was created not long after it went back below 127.27. 

Now it will be very disturbing for me if I don't see the pair reach at least the 50% level, especially after that firm looking bearish candle on Friday. I have checked the outlook for USDJPY and GBPUSD hoping for confirmation. While there is still a rising trendline below GBPUSD current price, the other pair closed just below 38.2% level on daily time frame. Or the way I see it, a break of that level on weekly candle. So there is the confirmation I needed and I'm going to look to place short trades as early as possible.

GBPJPY Trade Setup

Just gonna make a quick post here. The pair closed below 23.6% retracement level last week. I predict further retracement toward the next level at 127.27 as long it stays below 23.6% level at 129.64.

EURUSD Setup For Next Week

The pair closed above 1.3240 (2% deviation/envelopes of 50 week EMA) this week, forced me to question the bearish potential. The more I gaze at this weekly chart, the more I suspect a strong bullish candle for next week. However, there is a possibility of a gap below 1.3240 when the market open tomorrow. IF that is the case then I'm gonna shift back to bearish view on this pair.

EURUSD W1

IF the pair open at the same level, then 1.3285/90 is the immediate resistance (H4 chart) and 1.3500 above that. Support could be seen around 1.3240 and 1.3150. The 2-week rising trend line may also provide a minor support.


I leave multiple short position over the weekend. I haven't been able to decide how I deal with those open trades; either I add more positions (averaging) or accept the losses. I really wanna keep those shorts as I believe that the trend is still down on the intermediate scale (4 hour time frame). Close above 1.3290 will confirm trend reversal with risk at 1.3150.

EURUSD H4