GBP/JPY Trade In Profit – Bullish Max Butterfly Plays Well

The fundamentals scheduled for release today is on the lighter side, as the U.K. markets are closed in the observance of May Day. However, we opened a forex trading signal to buy GBP/JPY during the European session. Here’s an update on the GBP/JPY signal…

Sterling – Fundamentals Review

The British Pound is mostly unchanged due to lack of volatility and trading volume, but it’s going to be one of the most active pairs soon. The BOE (Bank of England) is scheduled to release its monetary policy after their meeting on Thursday and they are widely expected to hike rates in May 2018.

Recalling our weekly economic outlook, they BOE isn’t expected to hike rate this month. I’m not sure when they will, but the press conference is likely to give us some clues.

GBP/JPY – Technical Outlook

The Guppy has formed a bullish max butterfly pattern which has just completed it’s C to D wave near 147. On the 4- hour chart, the recent two candles are bullish, especially the first one is a bullish engulfing which is signifying the potential for a bullish reversal or retracement.

Applying the Fibonacci indicator, the GBP/JPY has already completed 23.6% retracement and now is likely to target 50% retracement at 148.600.

GBP/JPY –  Trading Plan
I’m sticking with the signal of staying bullish above 147.800 with a stop below 147.450 and a take profit of 148.250 and 148.600. Good luck!