The GBP/JPY started the 6/2 European session with a bullish continuation signal.
The 4H chart shows that after a slight correction from 190.71 at the end of last week, GBP/JPY found support at 188.48 to close the week. To start this week, the market respected the 188.48 low again. Note that this was a previous consolidation resistance now acting as support. This dynamic reflects a bullish market.
Also, the 4H candle that reflects the start of the European session is a bullish engulfer bouncing off of 189.00, another bullish continuation signal. The pressure is on the 190.71 high from last week, with risk of breaking through.
Let’s look at the monthly chart. Perhaps, in the short-term, we will see some resistance around 192.50, a previous support pivot in 2008. We can see in the monthly chart, that there aren’t any significant resistance factors between the 190.71 high and the psychological level of 200.
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