FX.co ★ GBPJPY bearish continuation | 7th Oct 2021

Price is holding below the descending trendline resistance, signifying a bearish momentum. We can expect the price to continue to push down towards the 1st Support in line with 61.8% Fibonacci projection and 61.8% Fibonacci Retracement, if the price pushes past the intermediate support. Our bearish support is further supported by the stochastic indicator where the %K line drops from the resistance level. Alternatively, if price did not push past the intermediate support price might reverse back up to the 1st Resistance in line with 78.6% Fibonacci projection.

Trading Recommendation

Entry: 152.1

Reason for Entry:

Descending trendline resistance ,78.6% Fibonacci Projection

Take Profit: 150.157

Reason for Take Profit:

61.8% Fibonacci Retracement and 61.8% Fibonacci projection

Stop Loss: 152.789

Reason for Stop Loss:

100% Fibonacci projection and -27.2% Fibonacci Extension