GBPJPY aims at triangle upper line
13 February 2023
Today, we are bringing you a quick update on GBPJPY, where we have a very interesting situation, albeit not a proper trading signal yet. We should get one really soon, which is why it’s certainly worth it to plan ahead.
Since the second half of December, GBPJPY has been inside of a symmetrical triangle pattern, making it the second symmetrical triangle since October. The first one resulted in a bearish breakout, giving around 1000 pips profit for the sellers at its best. In case of the current triangle, we were testing its lower line at the beginning of the month. The test resulted in a bounce and the price is now aiming at the upper line of this formation. Monday has been pretty successful, as the pair is rising by 1.27% - the highest rise out of the popular forex pairs.
The base scenario is the price reaching the upper line of the triangle, which can still give us a 70-pip move. The long-term situation here depends on what happens with the two lines of the triangle. Breakout of the upper line of the triangle will give us a proper signal to buy and the breakout of the lower line of this formation will give us a legitimate signal to sell. If the trend is about to prevail, we should see the second option becoming a reality. What might help in inducing the move here is the inflation data from the UK, but we have to wait until Wednesday morning for that.