FX.co ★ GBPJPY short-term bullish bounce | 1st Nov 2021

Price is abiding to the descending trendline resistance, signifying an overall bearish trend. However, price is currently at a graphical overlap support, we can expect price to make a short-term bullish bounce from the 1st support in line with 61.8% Fibonacci projection towards 1st Resistance in line with 61.8% Fibonacci projection and 38.2% Fibonacci retracement. Our short-term bullish momentum is further supported by the RSI indicator where it bounced off at the support level.

Trading Recommendation

Entry: 156.053

Reason for Entry:

61.8% Fibonacci projection and graphical overlap

Take Profit: 156.701

Reason for Take Profit:61.8% Fibonacci projection and 38.2% Fibonacci retracement

Stop Loss: 155.364

Reason for Stop Loss:

78.6% Fibonacci projection