GBP/JPY 4H Chart: Channel Up

27 Jul 2017

GBP/JPY 4H Chart: Channel Up

• The British Pound is trading against the Japanese Yen in a one week long ascending channel.
  
• The pattern represents a rebound of the currency exchange rate from a combined support level formed by the preceding descending channel’s bottom trend-line, the 200-period SMA and the monthly PP at 143.89.
  
  
• At the moment, the channel is made of four confirmation points and, thus, is finally formed.
  
• Because of the 87-pip advance, the pair managed to easily bypass the weekly PP at 145.39 two days ago.
  
  
• If a similar situation will not happen again, the currency rate might be turned around by the next resistance level set up by the weekly R1 at 146.72, provided that it will break though the 100-period SMA near 146.14.