By Admiral Markets
The GBP/JPY has formed a variation of a V-shaped pattern named “Diving Board”. The diving board is a reversal pattern that forms after the price makes a flat base than drops down with a high momentum that is followed by a straight-line run-up. V-shaped reversal is created, and the price proceeds up. At this point, we can see two POC zones. The first POC is 149.00-149.10 (D H3, W H3, Order block). Because of the strong trend that we can spot, the first POC zone could show a rejection if the price retraces. If we see a broader retracement below POC1 than pay attention to POC2 (50.0, EMA89, W L3) 148.35-148.66. Rejections from any of POC zones should target 149.90 and 150.47.
W L3 – Weekly Camarilla Pivot (Weekly Interim Support)
W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)
W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)
D H4 – Daily Camarilla Pivot (Very Strong Daily Resistance)
Free Reports:
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
D L3 – Daily Camarilla Pivot (Daily Support)
D L4 – Daily H4 Camarilla (Very Strong Daily Support)
POC – Point Of Confluence (The zone where we expect price to react aka entry zone)
Follow @TarantulaFX on twitter for latest market updates
Sign up for Live Trading Webinars with Nenad Kerkez T
Connect with Nenad Kerkez T on Facebook for latest market update
Read the Camarilla trading blog
Article by Admiral Markets
Source: GBP/JPY Diving Board Reversal Pattern Targeting D H4 and W L5 Camarilla Levels
Admiral Markets is a leading online provider, offering trading with Forex and CFDs on stocks, indices, precious metals and energy.
