GBP/JPY potential short trade opportunity

on Nov 8, 2023
  • The GBP/JPY will possibly drop to the 181.037 support level after retesting the 184.994 resistance level
  • The trading signal provided should last 1-2 weeks with a potential upside of 2.14%
  • I would recommend watching this trade while the GBP growth data is published tomorrow

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GBP/JPY trading strategy

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  • Buy/sell asset: Sell GBP/JPY
  • Entry price: 184.994
  • Stop loss: 186.129
  • Leverage: 1x
  • Take profit 1: 184.00
  • Take profit 2: 182.00
  • Take profit 3: 181.037
  • Timeframe: 1-2 weeks
  • Maximum profit: 2.14%
  • Maximum loss: 0.61%

GBP/JPY chart and technical analysis

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GBP/JPY recently retested the 185.928 major resistance level and the price was pushed downside from that level. I am expecting the price will drop further and will retest the 181.037 support level before breaking above the 185.928 resistance level.

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The price is already making lower lows on shorter time frames, and the candles are also indicating a potential drop this week. However, the overall trend remains bullish on higher time frames i.e. daily and weekly.

I am expecting the price will climb up slightly and will retest the 184.994 resistance level before dropping. I am considering the same price for short entry and my target on this trade is the 181.037 support level.

GBP/JPY Fundamental analysis

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There is no major news event today on either the Great Britain Pound or the Japanese Yen. However, tomorrow there is high-impact news on the Pound regarding GDP growth.

If the GDP growth rate is better than expected it will strengthen the Pound and if the GDP growth is lower than expected it will push the price of GBP/JPY down in our favor.

Pound to Yen trade idea takeaways

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  • GBP/JPY is facing bearish pressure from the 185.928 resistance level.
  • The price will possibly drop to the 181.037 support level in the coming days.
  • Multiple take-profit levels have been added to secure profit along the way.
  • The risk-to-reward ratio on this trade is 1:3.9.
  • The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
  • Good luck!
GBP Japan JPY Technical Analysis Forex Trading Ideas