The GBP/JPY pair is in the resistance zone of 200 EMA on the Monthly chart. The price is in Bearish Divergence with RSI 6 period. Our STS_MA_Distance_Indicator shows a distance of 630 pips to 10 EMA.
On the Weekly chart we also have a serious Bearish Divergence and the Indicator shows 350 pips to 10 EMA.
On the Daily chart, the Indicator shows 192 pips to 10 EMA and RSI is oversold with a value of 86. All this gives us reason to expect that the price will make a downward movement to at least 10 EMA in the coming days until the end of the month. That's why we loaded our Forex Trading Robot to open short positions when the distance to 10 EMA is 100 or more pips. The Bot will open positions on every next candle if the condition for 100 or more pips distance is valid for the day. Currently the STS_MA_Distance_Bot has an open short position.
This is the advantage of Algorithmic Trading and the use of Trading Robots. The Bot will play exactly our analysis without having to wait for days and hours for the conditions to coincide in order to execute trades manually. It will also close the positions exactly when the price touches 10 EMA.
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