Bullish Channel In GBP/JPY – An Update on Trading Signal
Arslan Butt • 1 min read
GBP/JPY trades bullish, after coming out of the narrow range. A couple of hours ago, we shared a forex trading signal on GBP/JPY to stay bullish above 148.92 to target 149.350. Is it worth keeping it now? Yes, it is and here’s the reason…
The GBP/JPY is offering a nice trade setup on the 4-hour chart. For instance, the cross pair has entered the overbought zone, signifying chances of correction. However, a bullish engulfing above 148.750 is signaling a strong bullish bias of traders.
GBP/JPY is trading in a bullish channel, which is supporting the pair near 148.330 and can be a hurdle near 149.500.
Sterling has strived to capitalize in recent weeks on hints that the economy is growing because of rising uncertainty over whether Britain can achieve a trade deal with the European Union before it moves out of the bloc in March 2019.
In addition, the investors are expecting the Bank of England to hike interest rates in August but the Sterling has fallen since April partly because of a conflict between May and members of her party who feel she wants to keep Britain too closely bound to Brussels.
Anyway, I’m still expecting our GBP/JPY trade to hit take profit of 149.22. Traders are advised to move their stop loss at breakeven points.
GBP/JPY – Key Trading Levels
Key Trading Level: 149.02