GBP/JPY: trade ideas
By Felipe Erazo
GBP/JPY has been consolidating strongly in the bullish trend, as this pair remains above the 200 and 500 EMA on the H1 chart. Now the GBP/JPY is forming a bullish pattern above the support level of 174.53, so the next target in the bullish road is the resistance level of 176.44 (161.8 Fibo extension level).
However, the GBP/JPY could make corrective movements in the hours since the CCI indicator was recently in overbought zone, so it is likely that the pair make a retracement to the support level of 174.53. For now, there are no clear bearish patterns in the GBP/JPY.
Trading recommendations: Hold the buy positions until the resistance level of 176.44. Anyway, we don’t recommend to add new positions in the GBP/JPY, because currently there is no clear bullish or bearish patterns for do a good trading with this pair.
Chart. H1 GBP/JPY