Sup? Bulls and pound bears have been having a go at each other on GBP/JPY’s 1-hour chart. However, neither side has a clear edge over the other. As such, a symmetrical triangle chart pattern has now formed, as y’all can see on that there chart. A symmetrical triangle could potentially break in either direction. We therefore don’t have a clear directional bias on the pair. But if a breakout in either direction does occur, then the resulting rally or selloff could have enough steam for a whopping 800-pip move. Just note that an upside breakout needs to clear 143.80 with great momentum. Otherwise, there’s a chance that them bears may counter-attack. On the flipside, a downside breakout needs to smash past 138.70 with great momentum.
GBP/JPY has also been consolidating while tapering to a point recently. As such a symmetrical triangle has also formed. Well, it’s not exactly symmetrical, so let’s just go with symmetrical-ish. Anyhow, a breakout from that forex chart pattern could still potentially yield around 400 pips. Just make sure to keep an eye on how the pair reacts to 1.2600 (if an upside occurs) and 1.2350 (if a downside occurs). Also, always make sure to practice proper risk management, a’ight?
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.