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Big Picture analysis on GBPJPY: Immediate Support and Resistance levels

The start of every analysis begins with asking the following questions.

  1. Is it Up/Down or Flat?
  2. Is there any strategy to apply?
    • BM
    • WRMB
    • H4R
    • H4T
  3. Is price at any support or resistance now? Is there a 1234 pattern forming?

Overview

Looking at the H4 charts, we see that week to week boxes is up. Even if we look at a higher time frame (D1) we can also see price is up.

Overview of GBPJPY on D1 charts

Overview of GBPJPY on D1 charts

  • Month to month, a strong upward bias can be seen.
  • Even within the H4 charts (As seen through the inside boxes of this D1 chart), there is no bearish expansion found.
  • Currently price is at a resistance of a previous month high. Clearing this would allow price to head higher giving us a possible H4T strategy.

Immediate Support & Resistance

Immediate Support & Resistance levels on GBPJPY D1-Chart

Immediate Support & Resistance levels on GBPJPY D1-Chart

Price is currently at resistance. There is a few possibilities that can happen at this point.

  1. Price clears immediate resistance level
    • Look for price to retrace to the level as support in a form of a 1234 pattern.
  2. Price is unable to clear the current resistance.
    • Look for price to retrace to immediate support zone in a form of a 1234 pattern.

Having a sound Trade Plan is half the battle won, the other half that wins the war is Trade Management

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