GBP/JPY pullback trading setup to ride on the strength of Pound

GBP/JPY broke above the resistance zone around 137.7 on 9 Nov 2020 with a strong sign of strength rally followed by a pullback testing the now resistance-turned-support zone. Should the price have another swing down to test the support zone, this could form a potential pullback trading setup with high reward to risk ratio.

Watch the video below (timestamp starts 4:35) to find out the one thing that every trader must do when trading pullback to increase the winning rate (using S&P 500 futures as an example).

Below are the key parameters for GBP/JPY potential long setup for trading session on 13 Nov 2020. Pay attention to the context and confirmation signal as mentioned in the video to qualify the trade.

Entry: long limit order at 1.37.65 (refer to the video for entry confirmation)

Stop loss: 1.37.25

Take profit: 139.37

Resources

Weekly Market Outlook & Best Trading Advice straight to your inbox: https://www.tradeprecise.com/

Professional free Charting platform: Create an account→ www.TradingView.com