The GBP/JPY is start the 5/27 Asian session with a bullish continuation breakout.
The first bullish breakout you can see in the 1H chart happened last week, with a break above the 171 area. The 5/27 begins with a breakout above 171.85 which was last week’s high.
The 4H chart shows that the breakout also pushes GBP/JPY above a falling trendline from the May-high of 173.45.
The current breakout first opens up the 172.74 resistance area before the 173.45 May high
Bullish vs. Bearish Scenario:
If upon a subsequent pullback, a dip breaks below 171.50, which is the central pivot of the broken consolidation, then the bullish outlook remains in play.
A break below 171.50 however reflects a market that is showing respect to the previous head and shoulders pattern. In this bearish scenario, the 170.00 handle comes into play.
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