Title
GBPJPY H4 | React off -27.2%
Type
Bearish Breakout
Preference:
Price has just reacted off our pivot point of 182.748 which aligns with a -27.2% Fibo expansion. A reverse from here price could fall to 1st support at 182.056 which is a pullback support that aligns with a 61.8% Fibo retracement.
Alternative scenario:
However, if it breaks above the pivot point it could rally to 1st resistant at 183.341 which slightly above with a -61.8 Fibo expansion
Furthermore, there is bearish divergence between the indicator and price, indicating a potential rapid decline in price.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.