GBPJPY Short|Bearish Divergence|Range Support|.618 Fibonacci

Evening Traders,

Today’s Analysis – GBPJPY- at a pivot point on the chart, price is likely to impulse down if dynamic resistance is respected.

Points to consider,
- Macro trend bearish
- Resistance confluence
- Oscillators diverging
- Volume below average
- Range support target

GBPJPY’s macro trend has been putting in consecutive lower highs – this gives us a bearish bias on the overall market.

Price is currently testing dynamic resistance; this area has multiple technical confluences, the .618 Fibonacci and market structure – putting more significance on the level.

Oscillators are both diverging from price validating a bearish divergence. Price respecting the .618 Fibonacci will keep the divergences at play.

volume profile overall is below average, a respect or break of the dynamic resistance will lead to a notable volume influx.

Overall, in my opinion, range support is the immediate target if technical levels are respected. A short is valid with defined risk.

Price breaking above dynamic resistance will negate the trade.

What are your thoughts?

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And remember,

“If you can’t take a small loss, sooner or later you will take the mother of all losses.” – Ed Seykota