GBPJPY POTENTIAL RESISTANCE AND BEARISH BAT PATTERN
If the pair pulls back to the 162 area there could be a potential opportunity for a short.
Reasons to short -
Larger trend is bearish
Possible completion of a bearish bat pattern
Returning to a major SR level (blue line)
The previous time it was at this level there was a strong sell off, and it is the first time it could return to this area (yellow box)
A confluence of fibonacci levels from previous highs (inside the yellow box)
Good risk to reward ratio
Reasons to short -
Larger trend is bearish
Possible completion of a bearish bat pattern
Returning to a major SR level (blue line)
The previous time it was at this level there was a strong sell off, and it is the first time it could return to this area (yellow box)
A confluence of fibonacci levels from previous highs (inside the yellow box)
Good risk to reward ratio