In today’s Trading Idea, we will consider the GBPJPY currency pair. The current formation of the pair suggests the development of an uptrend that moves inside a large green channel.
For almost the entire September of this year, the price was in the lower green area, then dropped to the lower green wall and pushed off from it. Since October, the market has started to rise rapidly along the yellow channel.
Currently, the price is in the upper green area. That is, the bulls have a chance to bring the market to the upper green line and try to break through the resistance level of 157.18. If this price level is successfully broken, the bulls will continue to move within the yellow channel to its upper wall and the resistance level of 159.89.
In an alternative scenario, a bearish price move is assumed. It is possible that the market will fall to the lower yellow line and the support level of 154.16. If this level breaks, the bears will be able to continue moving in a downward direction to the lower wall of the green channel and to the support level of 149.20.