FOREX CHART ANALYSIS NOV 10 - TIME FOR A PAUSE
There are a lot of surprises at the first sessions of the week. Many pairs dropped their prices dramatically and that leads to considerable changes. Let's analyze the charts today so that we can know how to trade.
USDJPY made a big surprise, but fortunately we were defending when the price approached 103. A short turnaround plan around 104 could not be done without signal and the price was too strong. The recent strong bounce broke many important resistance zones and caused us to temporarily give up our sell strategy. Consider returning to short-term buy orders on the upside and a new bullish engulfing pattern. The buy zone could be from 104.5 - 105 when there are noticeable bullish signals.
The price failed to break through the barrier of 1.190 and created a bull trap around this zone as expected. Currently the selling pressure is quite clear and the bearish pattern also appeared on the H4 chart. You might consider sprinkling short orders because the RR level is pretty good.
Unlike most other pairs, GBPUSD is still accumulating in a narrow range ahead of the important resistance 1.320 - 1.325. There are no major changes, so the view that the price can be adjusted down around this area remains. This is not the time to trade this pair. In case the price breaks and goes up, it is necessary to consider the breaking force before considering entering the order following the current uptrend.
Unexpectedly, the price broke the support zone 1.30 but was strongly rejected around 1.295 - the lowest bottom since November 2018 - and created a bear trap. Take profit / buy moves around this area created a remarkable bullish pin bar on the daily chart. Trend traders should stop trading. Reversal traders may start considering sprinkling orders as the RR level is quite good.
The price bounced up after retesting the 0.725 zone and approaching the 0.735 level as expected. I hope you can escape the buy order. The retreating price action from the 0.735 area created a noticeable bearish pin bar on the daily chart, so it is likely that the price will continue to decrease in the short term. We will hold the buy orders temporarily.