GBPJPY Long trade after GBP News!

24 août 2023

On GBP/JPY, I entered the market after a significant decline in the pound following negative data yesterday, as both the manufacturing and services sectors were confirmed to be contracting. I chose to enter at a strategic zone, following the breakout of a swing high on the H4 chart at the 184.25 level. Afterward, I attempted to identify interesting areas on the H4 chart, but found nothing there. So, I shifted my focus to the H1 chart, where I discovered a strong candlestick pattern just before the swing high was breached. At that point, I waited for a price retracement to that zone.

Once I entered the trade, I monitored the market's movements on the H1 and M15 charts to seek confirmation of my analysis. I received confirmation when, at the close of the London trading session, the market formed a double higher candle pattern on the H1 chart. My target for profit was set within a box on the H4 chart, where the price could potentially reverse due to it being the last box before the H4 swing low was broken.

Wishing everyone successful trading.