Let's look at the sell opportunity we have for this pair. We start off by looking at the H1 charts. We have several resistance areas around 122.74, 123.05-.15 and 124. We also have 19 candles running the Bollinger bands and like I have said before this is a visual tool used to give us a heads up that price once it reaches 20+ candles could start to make a change in direction. We also have a beauitful Bearish Continuing Divergence on the MACD indicator and on the RSI indicator. Also pay attention as the RSI indicator is playing around extreme levels. We will look to attack around 123.05-.15 and we will look to add to our position at 124. For those wondering why we add to our position it is because we use negative leverage and aim for market cycle that will take the pair down. Since we are working with the H1 charts our target will be the opposite boundary of the the Bollinger Band on the H1 chart.
GBPJPY Trade setup 2012.02.08