FX.co ★ GBPJPY Potential For Bearish Dip | 24th Feb 2022

On the H4 timeframe, prices are on bearish momentum and abiding to our descending trendline. We see the possibility of bearish continuation from our 1st resistance at 115.994 in line with 50% Fibonacci retracement and descending trendline towards our 1st support at 115.354 in line with 100% Fibonacci retracement. Our bearish bias is further supported by RSI being at levels where dips previously occurred. Breaking our 1st resistance will find prices climbing higher towards our 2nd resistance at 115.539 in line with 78.6% Fibonacci retracement.

Trading Recommendation

Entry: 115.994

Reason for Entry:

50% Fibonacci retracement and descending trendline

Take Profit: 115.354

Reason for Take Profit:

100% Fibonacci retracement

Stop Loss: 115.539

Reason for Stop Loss:

78.6% Fibonacci retracement.