A couple of weeks ago, we were looking for a possible GBP/JPY counter-trend long. The Beast was sitting at a horizontal support/resistance zone and if it had have held then we were looking for that first intraday pullback to get long off of. But alas the level didn’t hold and price dropped lower through it.
Three weeks later and price is back at the zone again and the setup has some real promise.
GBP/JPY 4 Hourly:
That looks like a textbook trend line breakout which if you keep reading, would mean a possible entry short on a re-test. But how often do we see the textbook setups like this fail miserably. Nothing in forex trading is textbook! If it is written in a textbook then the smart money will so often do the opposite otherwise everyone would make money.
Ah this trading game is a strange one, I know!
GBP/JPY 15 Minute:
So now zooming into an intraday chart, with that 4 hour horizontal support/resistance zone looking like it’s holding for now, the play might actually be to look to get long.
Your options are to aggressively get long on this current pullback if you think that the support zone has held, or you can wait and see if it properly breaks higher and then buy the first true pullback once you have that confirmation.