GBPJPY: Counter trend setup to watch
The GBPJPY pair’s movements have been dominated by bulls during the previous period; particularly after building good technical bases as seen on the provided eight-hour chart.
Presently, the pair started to show some kind of pause with slow Stochastic overlapping bearishly and DMI turning bearish.
The bearish kiss appeared on Stochastic may assist the pair to move lower, as the probability of tracing a negative divergence increases.
Of note, this is (C) class divergence and it occurs in a strong trends just to relive momentum indicators; accordingly, we aim to see the GBPJPY moving lower towards 188.80 zones, but stop loss should be placed about 50-60 pips above the significant highs of 192.20 highs.