GBP/JPY: levels & targets
By Dima Chernovolov, FBS
• GBP/JPY reversed from support level 176.00
• Likely to rise to next buy targets - 180.00 and 182.00
GBP/JPY recently reversed sharply from the support area lying between the support level 176.00 (which previously stopped the primary ABC correction ② from the start of December) and the 61.8% Fibonacci Correction of the previous sharp impulse from the middle of October. The upward reversal from this support zone created the daily Japanese candlesticks reversal pattern – Bullish Engulfing, as you can see from the daily GBP/JPY chart below.
Having recently completed the primary ABC correction ②, GBP/JPY is likely to continue to rise strongly in the nearest time toward the next pivotal resistance level 180.00 (which also reversed the pair earlier this month and also in last September). If the pair breaks above 180.00, GBP/JPY can be expected to rise further to the next buy target 182.00.