Daily Technical Analysis - August 27, 2015

Prolonged struggle to break resistance... what next? Reversal! GBP/JPY could not break out and the bears came in strong. It's at neckline support of 186.00 now but support does not look strong enough to hold of this bear attack. If GBP/JPY charges past support, then this might be a massive short trade. A 1000 pip opportunity perhaps because the chart formation is about 1000 pips in height. When a sell off happens, a 1000 pip move down south will not surprise. More bad news for the bulls... Stochastic is pointing down which is another sign why support might not hold this bear charge. And another confirmation to bear strength is the SMA lines - 100 SMA is about to cross below the 200 SMA. Wait for the break below 186.00 and a nice short trade might make you smile this next few days.