GBPJPY - 16-20 August 2021 Outlook and Trade Plan

15. Aug. 2021

GBPJPY 16-20 August 2021 Outlook and Trade Plan

• Monthly structure still holding bullish with previous 2 months bearish close respecting 152.00 key level. A close below 152 will encourage more shorts to test the lows at 149.
  
  
• Weekly continuing the bullish momentum after 23 July solid close. Previous week bearish close formed a solid resistance and barely closing below 152 which indicate shorts pressure. 151.60/50 is the last support on weekly to hold as support for the bullish structure continuation. Below that we will confirm that a LH is formed and a continuation of the bearish momentum continuation after creating the YH at 156.
  
  
• Daily structure still bearish with LH/LL formation, trading below 1 July resistance formed at 153.56 due to the support formed on 14 May at 153.70. August 3 formed the first HL since 1 July at 151.67 bouncing from the daily zone at 151 key level. Last week close confirms the rejection and a continuation to the down side to test 151.60/50 is due. A close below that will confirm daily bearish momentum continuation. On the other side A close above 153.70 will give the opportunity to test the highs at 154.43 and 154.85.
  

As a trade plan for next week, i'm looking to the following:

Longs: On higher support formation and a close above 152.60/80 targeting the current highs and maybe continuation to 153.41

Shorts: option 1 will be on resistance formation below 152 targeting created targets and 151.60 4H Support. While option 2 is safe shorts below 151.60 targeting 151/150.90

• News: A busy week for JPY and GBP with news everyday except Thursday, so please map news times as per your trading session.
  

Daily Chart


4H Chart


GBPJPY