GBPJPY: Double Bullish Divergence and How to Trade
British Pound/Japanese Yen FX:GBPJPY
What do you think about such a long trade?
The price bounced from the support zone at 135.00 level. The daily chart looks bullish and we talked about such a buying opportunity based on a reversal signal.
The 4H chart gives us an exact trading signal based on a double bullish divergence . It is a trend reversal signal. We can use the current price for buying as well as wait for a possible pullback to 135.500 and buying based on a reversal signal.
Here is a possible long trade:
Buy above 135.625
Stop below 134.850
Profit Target at 138.850
Risk per trade must be no more than 2% of the capital.
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Source: TW DLavrov