After yesterday’s fakeout move caused by algo traders trading on the Brexit news, the GBP/JPY went exactly as planned. –>
UK PM May May proposed a free vote on a 2nd referendum and sparked a massive backlash from Pro-Brexit ministers. GBP basket was instantly bought where the “Dragon” (GBP/JPY) has spiked app 120 pips. However that was a fake move caused by algo trading and soon afterwards the trend returned back to normal. Arrows and diamonds represent perfect short trade signals generated by the CAMMACD.MTF.
140.20-40 is the POC zone. A rejection from the zone targets 139.50 zone. A break of 139.50 should target 139.05. Only below 139.05 we will see a continuation towards 138.28 in upcoming days. Break of 141.13 to the upside could form a new trend but in that case 140.95 should hold any dips. However, the trend is now bearish so selling the rallies is still a valid option.
The analysis has been done with the
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Many green pips,
Nenad Kerkez aka Tarantula FX
This article was originally posted on FX Empire
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