GBP/JPY Trades Ascending Triangle – Odds of Breakout Looms
Arslan Butt • 1 min read
The Sterling slipped against the Japanese yen during the Asian session before the release of GDP figures. Moreover, the market is still trading the “risk off’ sentiment which is increasing demand for safe haven assets.
Sterling – Fundamentals Review
The British Pound was mostly unchanged by Nationwide Housing prices that fell short of expectations, with the year-on-year figures for March released at 2.1 % vs. 2.6 forecast.
Traders, we need to monitor the Current Account and Final GDP q/q figures of the UK. Both of them will be released at 8:30 (GMT) and will be a trendsetter for the next week.
GBP/JPY – Hourly Chart
GBP/JPY is sideways and has formed an ascending triangle pattern. The pattern is supporting the pair near 149.650 with resistance at 150.450. If you recall, an ascending triangle pattern has a tendency to breakout upward. Can we expect the same today? Well, we can look at the GDP figure for clues.
Key Trading Level: 150.02
GBP/JPY – Trading Plan
I’m looking to stay bearish below 150 to target 149.450 and 148.40. On the flip side, buying above 150.450 seems to be a good idea. Good luck!