Let’s take a look at the GBP/JPY chart.
With the big spike in mid-March, we tested our Fibonacci levels both including the spike and not including the spike. If you include the spike, you’ll see we’ve been flirting with the 61.8% retracement level for some time now – which is a potentially good turning point for many currency pairs.
We are at the top of the trend line and it looks like there still may be more potential to test the 61.8% retracement level (which conveniently sits at 129.00). Look for the pair to potentially head down to test the 129.00 level.
If you’re trading this pair, be sure to watch for false breaks above the line, however, if the pair breaks above and breaks away, then we will potentially see more upward movement.
Use your own analysis!
Good luck with trading.
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• +4,462 long term pips
• +1291 pips short term trades
• +50-100 pips per week average on quick trading
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