GBP/JPY Eyes 137 as Asymmetric Triangle Breakout
Arslan Butt • 1 min read
The safe haven currency Japanese Yen remains in power amid lingering trade war concerns. That’s unsurprising given uncertain global risk appetite, triggered over long-running US-China trade dispute and now bolstered by significant protests in Hong Kong.
The British Pound turned bearish from its best levels of the current week after the opposition Labour party disappointed in a bid to set in motion a political process that would eventually stop a ‘no deal’ Brexit from taking place on October 31.
GBP/JPY – Asymmetric Triangle Gets Violated
Besides fundamentals, the technical side is also supporting the bearish trend in GBP/JPY. On the 4-hour chart below, GBP/JPY traded in an asymmetric triangle pattern which was supporting the Guppy over 137.650. However, the level failed to survive against the safe haven demand.
Right now, GBP/JPY is likely to gain support above 137, and the violation of this could extend the bearish trend until 136.570. On the upper side, GBP/JPY may face resistance below the bullish trendline level of 137.850.
Key Trading Level: 138.01
GBP/JPY – Sell Signal
Fellas, we are holding our sell position below 137.28 with a stop loss above 137.68 and take profit of 136.98.
Good luck and stay tuned for more updates!