Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.
I wrote about GBPJPY on Sunday.
The pair has been consolidating below new resistance at 129.60 since dropping below it on August 5th.
However, one thing that caught my attention was the higher low between the 14th and 15th.
That buying pressure led to Friday’s retest of 129.60 as new resistance.
And while buyers are still encountering selling pressure here, you can see how the pair isn’t backing down from the area.
That doesn’t mean we will see a break higher, but it does suggest that there’s quite a lot of demand sub 129.60.
A close above 129.60 would open the door to a 132.20 retest.
On the other hand, a bearish pin bar from 129.60 could keep sellers in control.
It would also re-expose key support at 126.80.
Just keep in mind that August is a challenging month for trading.
That becomes apparent when you observe currency pairs like GBPUSD, AUDUSD, and a plethora of crosses consolidating for the last few weeks.
As such, it’s a good idea to add an extra dose of patience to your trading and even reduce your position size.
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