Sophia Todorova has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens.
The weekly chart below, shows Gbpjpy currently trading just at the underside of its channel resistance line at 133.70 area. The 4hr chart reflects the reaction to this important resistance with a mass of wicks, as the pair consolidates, and tries to determine further direction. 132.80 has so far been holding very well as support, and a breach of this area should send it towards 132.30, which is the next immediate support level on the hourly timeframe. The 4-hour channel support comes in at 131.50, so that is another important for profit-taking on short positions.
Should the 4-hour support give way, we might even see the weekly lows at 129.00s being tested. I am holding a small short position at the moment, which I entered at 132.97. Needless to say, I will be watching the pair very closely.
Thanks a lot for reading! 🙂 You can also view my last post here: http://winnersedgetrading.com/gbpcad-trading-opportunities-trading-strategy/
If you are interested in following this pair with me, it is a good idea to follow me on twitter, since I am able to give quick updates there, and you will be able to get them instantly.
When trading always use a stop loss and calculate the proper risk management for your account. This analysis aims at providing assistance to the forex trading community here at Winners Edge Trading, thereby helping them to make informed trading decisions.
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