Facts:
Short term sentiment remains downward
GBPJPY reacted to the upper limit of 1:1 structure
The price sits below 100-period moving average
Recommendation:
Trade: Short GBPJPY at market price
Target: 187.20, 185.35
Stop Loss: 193.55
Opinion: GBPJPY has been trading in a downward trend recently. Looking at the D1 interval, we can see that the price bounced off the key resistance. The resistance at 192.30 is marked with the upper limit of 1:1 structure. According to the Overbalance methodology, the further downward move looks to be the base case scenario. In addition the price sits below the 100-period moving average which confirms bearish sentiment. We recommend going short GBPJPY at market price with two targets: 187.20 and 185.35. We also recommend placing stop loss at 193.55.
