GBP/JPY analysis by Keon Consultancy, a Forex Fund Management company
- KeonConsultancy.com
- Oct 31, 2020
- 0 min read
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Return from psychological level of 3000 may give us a trading opportunity in Gold. Buyers may be taking profit and getting out, which may...
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GBP/JPY hit the target.
I agree with your point of view. If I were 100% strict, I wouldn't take the position. But, let me explain what all I saw to consider taking at least a position in GBP/JPY with half of my normal risk per trade. Even though all the criteria were not met by the GBP/USD; USD/JPY and GBP/JPY had met all the criteria. Not just RSI and MA crossover but also the tendency of making lower lows and lower high was broken on GBP/JPY. Therefore, I wanted not to skip the opportunity and decided to risk at least half of what I normally do. While GBP/USD made a lower low today, GBP/JPY also retraced down and thus point C was dragge…
A condition for the buy trade was never met because RSI was below 50 on GBP/USD when the candle mentioned by you was closed. RSI never went above 50 since then till now. Therefore, it should have been better to avoid entering the position because you yourself take the technical scenarios of the major pairs into account to enter a trade on non major pair. But, it was a good idea to reduce the lot size/risk by half of your normal per trade risk.
Perfect, Keon. A new low made in today's Asian session has been just 4.5 pips lower. I am monitoring now; if an H4 closes below the low of the Asian session, I will exit the trade.
SL was removed before Friday-closing in order to avoid getting stopped out due to any temporary volatility on Monday-opening.