GBP/JPY: trade idea (June 24)
By Felipe Erazo
At the H4 chart, we can see that the GBPJPY has been doing an orderly retracement level from 173.98 and now this pair is finding support at the 173.27 level, where the 23.6 Fibo level is located. If the GBPJPY manages to make a breakout at that level, it would be expected to fall to the 38.2 Fibo level (172.83).
However, the bullish outlook is very much alive in this pair, as the GBPJPY has found strong support in the 38.2 Fibo level before, so it is very likely that this pair continue with the bullish trend in the H1 chart. If GBPJPY manages to make a breakout at the level of 174.42, the next target would be the resistance level of 175.85 (100.0 Fibo level). The CCI indicator remains above the -100.
Trading recommendations: Place buy orders if the GBPJPY does a breakout at the resistance level of 174.42 with take profit at the 175.58 level. In the bearish road, place sell orders only if this pair makes a consolidation below the 61.8 Fibo level.