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.

GBPJPY-H8-ICN-15-06-2015

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.

Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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