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Faraday: Trading sterling weakness against yen strength
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Faraday trader Thomas Light thinks Sterling has looked vulnerable during the last two weeks and plans to pair it against a resilient Japanese Yen.
"If we take a look at GBPJPY’s daily candle chart you’ll see that prices have started to trend lower after failing to break above 188 resistance earlier in the month. This was followed by a break below the ascending channel."
On the hourly candle chart consecutive inside days have formed a bearish descending wedge formation.
Stop: 185.50
Limit order to take profits just above the October lows at 181.20.