GJ 01.10.17 Weekly Breakdown

What can we see on GJ? We have recently seen GJ achieve weekly midrange and also FIB extension D1. We can see that GJ has been overbought and has mad an impressive bullish run with very few pauses due to rumors of an interest rate increase. For me, I am expecting a downside rollover from this pair. We can see from the weekly timeframe we are seeing exhaustion, and have also formed a 3 pin and last weeks candle being a spinning top. If we take a look at the daily timeframe we can an engulfing pattern formed at weekly midrange and price pushed back to the downside finding support again at our key monthly level 1.50. At the back end of last week, we saw another push to the upside but price failed to break daily resistance, Is this a sign of our first LH’s? We are currently resting on our 8EMA as support.

H4 time frame is pretty messy, but for me I will only look to buy this pair when we achieve a deeper PB but for now I will be monitoring for some short-term countertrend sells, for example, if we can see a break below 1.50 and retest I will be looking to sell once we have seen a bearish continuation pattern. The first target would be next daily support level.

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