GBP/JPY applying The Quarters Theory:
Price is closing below the 191.00 resistance level after failing to break above it. This indicates a potential bearish bias forming. However, price is still holding above the 190.50 support level which needs to break to confirm the downtrend.
Potential short entries could come on a rally up into the 191.00 resistance that gets rejected and closes back below 190.75. Stop losses on shorts can be placed above 191.25. Initial downside targets would be the support levels at 190.50 and 190.00.
On the long side, the value area to watch is between 190.50 and 190.75. Longs could be considered on a pullback that holds this zone with stops under 190.25. Upside targets remain at 191.00 and 191.50 for partial profits.
For trade management, the plan would be to take partial profits at the next lower quarter-point level reached. For shorts, can take partial at 190.75, 190.50 and trail a stop from 190. For longs take partial profits at 191.25, 191.50 and trail a stop from above breakeven 190.90.
As for evolving conditions, if price breaks and closes above 191.25, it would negate the short-bias and switch favor back to long trades targeting 192.00. Alternatively a break and close below 190.25 support would confirm the downtrend.
Potential short entries could come on a rally up into the 191.00 resistance that gets rejected and closes back below 190.75. Stop losses on shorts can be placed above 191.25. Initial downside targets would be the support levels at 190.50 and 190.00.
On the long side, the value area to watch is between 190.50 and 190.75. Longs could be considered on a pullback that holds this zone with stops under 190.25. Upside targets remain at 191.00 and 191.50 for partial profits.
For trade management, the plan would be to take partial profits at the next lower quarter-point level reached. For shorts, can take partial at 190.75, 190.50 and trail a stop from 190. For longs take partial profits at 191.25, 191.50 and trail a stop from above breakeven 190.90.
As for evolving conditions, if price breaks and closes above 191.25, it would negate the short-bias and switch favor back to long trades targeting 192.00. Alternatively a break and close below 190.25 support would confirm the downtrend.
Penafian
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