GBPJPY Bearish Retest| 200DMA| .50 Fibonacci| Support Confluence

2020年9月5日Evening Traders,

Today’s analysis – GBPJPY – putting in a bearish retest, price is to test support, the next technical trade location.

Points to consider,
- Trend bearish retest (Daily S/R)
- Support confluence (.50 Fibonacci & 200DMA)
- Oscillators diverging
- Volume below average

GBPJPY has had an initial rejection from its Daily S/R, putting in a bearish retest. This allows us to have a bearish directional bias.

The local support area has technical confluence (.50 Fibonacci & 200 DMA); price is likely to respect this area leading into a bounce.

Both oscillators are diverging from price (double bearish divergence), this indicates weakness in the market as price struggles to close above Daily S/R.

Volume is currently trading below average; an influx is likely to occur at support confluence as this is the next trade location.

Overall, in my opinion, any rallies are to be sold into for a short play. Price action is to be used upon management/ discretion of trade.

Hope this analysis helps!

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And remember,

“Fear, inherently, is not meant to limit you. Fear is the brain’s way of saying that there is something important for you to overcome.”
― Yvan Byeajee