After making a new high on the year near 186, GBP/JPY has been consolidating. Let’s take a look at the structure of this consolidation to plan for a breakout.
There is an ascending triangle seen in the 1H chart, showing resistance around 186, and support at 184 then at 184.50-75. Today, price is making another bullish attempt but it seems to have stalled. If price can hold above 185.25, the bullish intent is still there and if this ends up breaking above 186.15, we can see another 200 pips or so higher (width of the consolidation range).
However, a break below 184.50 would signal further consolidation/bearish correction. Below 184.00, GBP/JPY might open up 200 pips lower, but we should limit our bearish outlook due to the weakness of the JPY and the prevailing uptrend in GBP/JPY, which is intact.
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