GBPJPY: What's Next After The Breakout?

2 Okt 2014

....Back to the Analysis… now that we’ve put in a lower low, lower close and the RSI is buried, I think 1 of 2 things will occur. Either we’ll continue straight down to the Fibonacci cluster which comes in at structure, or we’ll see some relief that will result in a retest into previous structure support which should now act as resistance. Now I would shy away from a buy at the current level because absolutely no valid structure exist for protection (at minimum I would recommend waiting for a double bottom or 26-18 setups), but if we do indeed rally up to previous structure I would certainly look for a selling opportunity and a chance to ride it down to a retest of previous support and ultimately an extension to the Fibonacci cluster I mentioned earlier where I may get yet another buying chance.

Above was an excerpt from my recent blog post titled "Predictions" ratiotradingmentor.com/2014/10/01/predictions/