GBP/JPY October Strategy: Bearish Reversal Confirmed with TDI
GBP/JPY October Market Analysis and Trading Outlook
The GBP/JPY monthly structure for October presents an open high-low-close pattern, signaling a potential sell setup. This bearish outlook has been confirmed by the TDI (Traders Dynamic Index) cross, indicating that it is now appropriate to consider sell entries.
Key Technical Highlights:
1. Daily Timeframe Open High Structure: On the daily chart, the price action for the month of October has established an open-high structure, which is often a precursor to a shift in momentum, supporting a bearish setup.
2. Consolidation and 'M' Pattern Formation: The price has been ranging at the highs, creating a period of consolidation. This consolidation resembles an 'M' pattern, a classic reversal formation seen at market exhaustion points. This pattern is significant as it suggests a potential reversal from the current high, reinforcing the bearish outlook.
3. Bearish TDI Cross Confirmation: A bearish TDI cross has occurred, signaling the presence of sellers in the market. This cross is a crucial technical indicator that validates the entry for sell positions.
Take Profit Levels:
- Take Profit 1: 193.000
- Take Profit 2: 192.000
Trading Advice:
Although the bearish TDI cross has provided confirmation, it is important to remain patient and ensure that other market conditions align with this setup. Always wait for valid signals and maintain proper risk management when executing trades.
If you find this analysis helpful, please like, comment, and follow for more updates. I’ll be sure to follow back. Best of luck with your trading endeavors!
---
