GBP/JPY - Daily
Our expectations - The upward wave has reached a key resistance zone, where it is good to position Short with the main short trend. The price has reached a resistance zone formed by main short trendline, a horizontal resistance zone, 50% Fibonacci correction of the main trend and 200SMA. 50SMA remains below 200SMA - Short-trend remain in force. As far as the indicators are concerned, DeMarker(14) is in the over-purchasing zone but does not report a short. Sequential counts 9 at the top and forms a down arrow - the likely end of the corrective movement and the beginning of a new downward wave.
Price Action: Going down a graph down (H4), it is noticeable how the bears take over the bulls with a strong rebound in the downward direction. An absorbing bar is formed in the resistance zone - a very negative signal for the price movement. In addition to the 4-hour chart, we have a 13-fold top, coupled with an arrow-end of the upward wave and the likelihood of reversing the upward trend.
SL: 149,549, to avoid Stop Hunting and speculation around the actual Brexit.
Alternative Scenario: If the price moves over the resistance zone and stays there, the negative scenario will wreck and we are more likely to see an increase in the GBP price.
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