GBP/JPY Might Be Beginning a Correction

The pair has been falling and falling hard for the past nine months.

Despite this you can see a signal on the daily time frame that a correction is about to begin.
 

Since the pair couldn’t stay below the support at 152.00 and despite the fact that it fell to 151.639, in the past two days the GBP/JPY formed an inverted hammer candlestick and a marubozu candlestick on the daily time frame, which are very telling signals that a correction might begin.

 After those two candlesticks there was another attempt to test the support at 152.00, which is also something that happens often at the beginning of a correction. If the pair does start rising the first level of resistance is, in my opinion, around 155.00 – 155.20, which is the upper band of the Bollinger Bands indicator that can be viewed on the 4-hour time frame.

In conclusion I would say that we should follow very closely how the pair behaves at that level.

USD/CAD Has Been Falling Without a Correction for 12 Weeks Now

Although the pair fell with 1200 pips for that time period it seems that the move to the downside will continue.

There was a moment when it seemed that the pair would bounce off the weekly support at 1.2922 (on 18th March) and many traders I communicate with believed that would be the beginning of the expected correction.

The pair continues proving those expectations wrong for four weeks now.

Despite the small moves to the upside USD/CAD keeps returning to the support coinciding with the lower band of Bollinger Bands indicator on the weekly time frame and testing that level again and again. The line, meanwhile, is moving further and further down and the pair will most likely break below it sooner or later. Not to mention that meanwhile it formed a new low. I have little doubt that it will succeed in doing so and after that it will drop towards the support 1.2660 – 1.2650, visualized by (EMA)89 on the weekly time frame (the green line), as well as the middle line of Bollinger Bands on the monthly time frame.

That level of support is incredibly strong and I think the pair will bounce off of it and correction will really begin.

EUR/GBP Is Close to a Reversal

After five months of a powerful upwards trend the pair finally reached the resistance level at 0.8100, visualized on the screenshot with the upper band of the Bollinger Bands indicator on the monthly time frame. That band is usually a very strong resistance level, which makes me think that the pair is close to a reversal and beginning a correction to the downside.

That said, I do expected the upward move to continue for another 100 pips or so – which is what is left to the trend line on the monthly time frame (the red line).

In conclusion, I think that EUR/GBP reaching 0.8180 will be turning point after which we will see the pair start moving to the downside.

GBP/USD Continues Falling while Waiting for the FOMC Meeting Minutes Announcement

The minutes of the FOMC meeting should be announced later today. Usually that announcement is a high impact event and it has a pretty strong influence on the market. Despite that expectation, the market did not wait for it while consolidating, which is what tends to happen before such events. Instead many pairs continued moving as usual.

GBP/USD broke below the trend line (the red line) and started moving to the downside towards 1.40.

It is quite possible that the pair will stop at that level while waiting for the news to come out. However, I think that it’s becoming more and more probable for the pair to continue falling and we could see it reach 1.38 or even lower than that.

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Downwards USD/JPY Trend Continues

The pair couldn’t climb higher than 113.80 and started falling again.

Under these circumstances it has become obvious that the pair is trying for another breakout below 111.00 – 110.70. In case it does manage to break below that zone, it will continue, I think, towards the next level of support around 109.00 – 108.70.

It is possible that the pair will continue falling below those levels, but that said, I also think that it is approaching a level when the move to the downside will end it will start climbing again. This move to the upside could begin around 108.50, 107.50 or even 104.50 (which coincides with (EMA)89 on the monthly time frame). At this point it is difficult to tell where the pair will start rising, but I am convinced that it will.

GBP/USD Started Falling Again

During the past few weeks GBP/USD has been moving in a way that has been quite beneficial for anyone interested in trading in it, since it has been so predictable.

All one had to do was to follow the signals appearing on the daily time frame and the movements to obvious levels of support and resistance up until the next signal that appeared on the daily time frame. I wish it is always this way, but unfortunately it’s not.


After the last two doji candlesticks formed under the resistance coinciding with the upper band of Bollinger bands (the blue line) and (EMA)89 (the green line) the pair started falling again. Its target is most likely 1.4060.

If it can break below that support then the next level of support is at 1.3850.

I think that if that a breakout below the support at 1.3850 occurs then then bearish trend will continue. For the moment it’s too early to tell and we will have to wait and see what candlesticks will form in the following days.