It’s always difficult and challenging to try and make sense of charts from a longer term perspective

 

I noticed late yesterday that GBPJPY was on the way to making an outside day ( bearish engulfing Candle ) on the daily chart. I was hesitant to open a short trade and leave it overnight, especially with USDJPY nearing the bottom of its range.

I mentioned yesterday that I have changed my view on EURGBP from a seller to a buyer even though I’m still of the mindset that GBP should be supported due to the Brexit talks seemingly making progress, albeit baby steps forward……So here lies my dilemma ——-.If I’m not particularly bearish on something from a fundamental perspective, do I allow the warning signs that I see in the technicals take precedence over the way I am viewing the market  ?……….. Is my attitude towards GBP wrong ?.

Being more of a shorter term ( scalp ) trader I often go against my ‘ bigger view ‘ during the day if I see a quick opportunity, I never have a problem doing so unless I am taking on too much risk and the rewards seem meager.

GBPJPY was the first chart I looked at this morning and noticed that it had continued to weaken a little overnight . I opened a short trade at  148.34.  I’m bearish up towards 149.10, placing my stop at break even and will re-assess my new found short bias regularly over the coming days and curse those damn charts for working their voodoo on me if I’m wrong  😉

Bearish Candle on the weekly shown in the chart below .

 

 

GBPJPY Weekly chart

 

Daily chart below showing another Bear engulfing Candle  (Outside day ).

 

 

GBPJPY Daily chart

Horatio Dubsly

Collects more scalps than Crazy Horse and newly crowned Bitcoin & Dow top calling master.
Philosophy: "Trading rules.....it most certainly does"

Read how Horatio got into trading here
Horatio Dubsly

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