Forex Chart – Dec 21, 2015: GBPUSD, GBPJPY, CHFJPY

GBPUSD

Price on the GBPUSD moved lower and broke an important level. Looking back to the daily chart below, we can see that the level that has been broke is been rejected several times in the past. Recent momentum and longer term trend still show weaknesses. This old support level now acting as the resistance level. We can see that after broke the support level, the price then paused and forming a Daily Inside Bar. I am watching if the price could move below the mother bar (previous bar before the inside bar) and start to open a short trade. But, I still consider opening a short trade on the retracement, if the price could print an obvious bearish signal at the old support/new resistance level. This trade could happen on the intraday, just like the 4-hour chart shows below.

GBPUSD daily chart 

GBPUSDDaily-151221

GBPUSD 4-hour chart

GBPUSDH4-151221 

GBPJPY

Recently, price on the GBPJPY is on the downtrend and broken off the daily support level with a massive Daily Bearish Engulfing Bar. This movement opens up probability for short trades if price shows any strength and retrace back to the old support/new resistance level. An obvious bearish bar could be a signal to go short.

GBPJPY daily chart

GBPJPYDaily-151221 

GBPJPY 4-hour chart

GBPJPYH4-151221

CHFJPY

This is a similar trade idea to above. I’m looking for the opportunity to go short on the CHFJPY if the price shows any signs of strength and retrace back to the old support/new resistance level. Price has broken off the support level with a huge bearish engulfing bar on the daily as the chart shows below. This bearish movement is in line with the longer term trend on the CHFJPY which still shows weaknesses. I will wait for the opportunity to go short on the intraday time frame if the price pulls back and forming an obvious bearish signal.

CHFJPY daily chart

CHFJPYDaily-151221

CHFJPY 4-hour chart – zoom out

CHFJPYH4-151221-zoom out

CHFJPY 4-hour chart – zoom in

CHFJPYH4-151221-zoom in

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