The GBP/JPY has been consolidating in November under the new high on the year at 184.66 and above 181.07. As we get into the 11/19 US session, the pair is testing November’s range resistance. Let’s take a look at the imminent threat of a bullish continuation breakout.
The Bank of England released its meeting minutes, and it was essentially the same as the previous several votes. A 7-2 vote to hold rates and maintain size of QE came as no surprise, though some did look for the two dissents to back off because the bank has lowered its growth and inflation forecast. Because of the non-dovish minutes, GBP may have gotten a boost. This helped GBP/JPY rally to its November resistance at 184.66. A break can open up the 188.00-188.30 area which would satisfy a projection using the width of the current range.
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