GBP Tests Recent Supports as New Resistances

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Published: Jun 5, 2018, 09:05 UTC

Most recently, GBPJPY broke all the major mid-term supports and went significantly lower. The drop had around 350 pips and was a great selling

Most recently, GBPJPY broke all the major mid-term supports and went significantly lower. The drop had around 350 pips and was a great selling opportunity. Now, time for the reversal. The price is about to test the recent supports as the new resistances. Everything is happening in a flag pattern. A breakout of the lower line of this formation will be a sell signal.

Cable is locked inside the flag and between the horizontal resistance on the 1.34 and the horizontal support on the 1.33. Breakout of the lower one is more probable and can bring us a strong sell signal.

USDCHF is the pair, where we also have to wait for the breakout. Here, we do have a double bottom formation along with the flag pattern. Both of them are pointing north but before the buy signal will be triggered, we need to see the price closing above the green area.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

About the Author

Tomasz Wiśniewskicontributor

During his career, Tomasz has held over 400 webinars, live seminars and lectures across Poland. He is also an academic lecturer at Kozminski University. In his previous work, Tomasz initiated live trading programs, where he traded on real accounts, showing his transactions, providing signals and special webinars for his clients.