I am bullish on the Yen for the coming months, and GBP looks like the perfect victim. It has been one of the weakest currencies out there, and from what I understand it is vulnerable from a fundamental perspective.
Looking at the weekly chart, the pair has not moved up to the Wave, which makes it still pretty oversold, but given the recent weakness, I think a short could be appropriate if there would be a nice setup on the daily.
And there is one indeed. Since the start of this downtrend, the Wave has been supporting without any flaws this downtrend. Price just rejected value on Friday, with a very bearish candle on Friday. I am not sure where the stop should be, probably for half of the position above 162 and for the other half above 164.
Look for further downside, no particular target in mind, but 148-150 looks attractive.
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IvanLabrie
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Agreed, longs look grim in any *jpy pair.
Stops around 161 are ok (if aggressive). Not seeing it retracing again.
Stops around 161 are ok (if aggressive). Not seeing it retracing again.