Adding GBPJPY short to the list

Aside from shorting just GBPUSD, I have also shorted the GBPJPY pair as well and here’s why.

GBPJPY:

gbpjpy1

I actually entered this trade before seeing the current bearish current day candle. We can see three successive bullish candles with small bodies and longer upper wicks. It is an indication that price traded high all three days, but closed only barely higher. As selling pressure still weighs in on this pair, I shorted it sometime yesterday. Today’s bearish candle provides an early indication that we can expect further selling for the days and weeks ahead.

One downside of shorting this pair is the negative interest swaps incurred. However, the long term movement should cover this cost.

Advertisements

A Pip For Your Thought?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s