GBPJPY Corrective Pullback Offering Sell Signal | Feb 6th

GBPJPY – After Two Legged Sell-Off, A Corrective Pullback
Failing to take out the ‘big figure’ at 175, the pair has sold off for over 1000 pips across two legs finding a brief reprieve just below 165. The pair formed a pin bar and has since climbed higher, but the bounce thus far looks corrective and three whole days have passed not gaining much ground.

I’m suspecting the bears are still in control, so am looking to sell on a pullback. I’ll look to sell on a corrective pullback into the next resistance level around 168.40, which also lines up with the 20ema and dynamic resistance. Downside targets will be 165 and potentially a much larger fall towards 160.

gbpjpy corrective pullback sell setup 2ndskiesforex

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Buddhist, Trader and Philanthropist

I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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  • Cherie

    Your Daily Signals articles are very much appreciated Chris ! :)

    • Chris Capre

      Hello Cherie,

      Am glad you are finding them useful.

      Kind Regards,

  • George Hausler

    One of the big problems I have when trading, is determining which trend rules.This setup look great on the daily, but when I move up to the weekly, it looks like we are trading against a massive bull run! It has bounced nicely off the 20ema and we have a nice looking pin bar on the weekly. On the weekly it looks like the trend is going to continue. Since the setup has posted, we’ve had 2 strong green candles heading into the 168.40 sell location. I look forward to hearing on how you you determine to pass or play on this setup as it develops!

    • Chris Capre

      Hello George,

      A very good question here. It is very possible both trades can be right. A weekly chart setup could dip for 1-2 weeks while still maintaining the uptrend, while the daily chart could manifest several signals in the opposite direction of the weekly trend, all profiting, while the weekly chart holds an uptrend-like structure.

      They both have different time horizons, so we have to take this into context.

      As to which time frame do we work with and how to approach this situation, we actually have a 4 hour webinar in the course, whereby I go over exactly how I do my analysis in relationship to time frames, find my signals, and make my trading decisions. This is all done using the same systems I teach in the course – which you are welcome to join.

      Regarding this setup, I am totally comfortable being ‘wrong’ because a) its just a 1R risk, and b) being ‘wrong’ will be a common occurrence in trading that you have to get comfortable with. I trust my methods and my style of trading. If I take this trade, and after 100 or 1000 times, I make money on it, then that is an edge, and an edge I have to take advantage of.

      Hopefully this gives you some good information to work with.

      Kind Regards,
      Chris Capre

      • George Hausler

        Hi Chris,
        I will definitely be watching as many of your videos as I can. I just signed up for your “Advanced price action course.” I’ve been very impressed by what you have to offer, and at a very reasonable price. I have been trading both live and simulation profitably. I look forward to improving my skills as a trader and learning some new strategies from your courses.