Another signal in a fast moving currency pair

candlesticks

Hey traders, how is your trading going so far this week?

What currency pairs are you monitoring/trading?

I dont know about you, but in the last few months I’ve been focusing mostly on crosses. For some reason, the majors haven’t been trading in clear S&R levels…

And that’s something that makes me think twice before getting into a trade. If we don’t have clear S&R levels, then we cant understand what the market is doing, and what it is likely to do.

Just take a look at most majors, open up the long term charts, there are no clear swings, no clear levels…

Now, take a look at some crosses and you’ll get exactly the opposite, clear swings, clear S&R levels, etc.

So, if you have been getting bad results lately, maybe its about time to look at the crosses now.

At the end traders, I believe that what we need to do day in and day out, is to focus in the instruments that have the clearest market conditions… that’s it!

Forget about everything else and try to trade every day only the currency pairs that have clear S&R levels, clear swings, and at the end the probabilities will do its job.

Anyway, here is one of those currency pairs that I believe is trading in a very clear market condition.

GBPJPY Signal

As most of you already know, the GBP crosses are among the instruments that move the most…

Last week alone, the GBPNZD reached our take profit order of more than 500 pips in just a couple of days.

Today is the turn of the GBPJPY… Right now, it is trading in a very clear bullish condition, you’ll need to look at its weekly chart to get the next LT level which is at 213.78

It is currently trading at 194.84

Go figure… around 1900 pips…

Ok, now lets take a look at the short term chart:

GBPJPY 1H

Its clear that the GBPJPY is ranging on the short term charts, so we have two possibilities, take a retracement trade from the bottom of the range or a breakout of the range.

I’d definitely favor a breakout trade here.

So here are my orders:

Entry stop: 195.97
SL: 195.28
TP: open

Your Turn

What currency pairs have you been trading/monitoring?

What do you think about my GBPJPY signal?

Share your thoughts.

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • Eric Aroh

    Raul,

    I am currently watching GBPNZD, and intend to go long above 2.3090. The TP potential is quite huge (900+ pips). The SL point appears too wide but position sizing (& proper funds management) will be adopted.

    What do you think?

    How did the trade on GBPJPY go?

    Cheers.

    • Raul Lopez

      Hello Eric,

      I agree with you, the profit potential in the GBPNZD is pretty good… I’m still waiting for a retracement… I’ll patiently wait for the right time to take my trade… there are more than 1000 pips on this one…

      Good luck Eric!

      PS. I’ll send you an email!

  • Chad Hogan

    Raul,
    Yes I have that order pending. I also went long on last nights signal on retracement back to support. Hopefully the news comes out good for the euro over the weekend. Im also long on EURJPY.
    cheers
    Chad

    • Raul Lopez

      Hello Chad,

      We had to remove those orders now, and wait a little longer now on those JPY crosses…

      We are focusing now on the NZD crosses.

      Good luck Mate!

  • Eric Aroh

    Raul,

    Update on my GBPJPY trade: today’s price action approached my SHORT position within 3 pips and RETRACED. After careful review of my initial bias (LONG trade with >50% probability of success), I decided to move my SHORT entry southwards by 5 pips.
    I am still waiting for the Australiasian market to trigger the SHORT position before 7 PM EST today.
    Thanks

    • Raul Lopez

      Hello Eric,

      I have the GBPJPY in a bullish condition… I would only recommend you to look for long opportunities!

      Good luck!

  • Chukwuzuluoke Ikuku

    Am currently looking at AUDNZD, the pair is currently at R level in weekly time frame. Hoping to sell if rebound and buy if break through

    • Raul Lopez

      Hello Ikuku, we traded the AUDNZD short term range for a while… now it broke through the bottom of the range, which means only short opportunities are in play…

  • Eric Aroh

    I placed an OCO (One Cancels the Other) trade on this pair early yesterday.

    Sell @ 194.28; SL @ 194.71, TP @ 193 13.
    Buy @ 195.92, SL @ 195.30, TP of 500 pips.

    All trends (1 Wk / 1D & 4HR trendlines) support a bullish sentiment suggesting a higher probability (> 50%) of the trade to continue trending UP. However my bearish position will act to cover the less than 50% probability of the trade surprising me.

    I’ll wait to see which position is triggered (in the next three days)

    I am currently watching the following pairs:

    EURAUD (breakout), AUDJPY (breakout), GBPAUD (uptrend trading – waiting for a pinbar reversal).

    • Raul Lopez

      Hello Eric,

      thanks you very much for your comments, they are always enriching…

      I wouldnt advice, you to use OCO orders, because that means there is no clear idea of what the market is doing… It could go up or down, and you are preparing for it…

      If the market is bullish, I would look for longs, if its bearish, then look for shorts. That’s it!

      That’s my humble opinion… what do you think?