GBP/JPY 4H Chart: Descending Triangle
The Pound against the Yen is an example of trade between risk on and risk off sentiments in the markets. Due to that reason the pair’s movements are mostly dictated by fundamental and political events.
However, technical analysis done on the pair reveals a possible scenario for the near future of the pair. Namely, a hypothesis can be made for the pair’s movements until the end of summer.
The pair is trading in a descending triangle pattern, which is aimed at the support of the 38.20% Fibonacci retracement level of the 2016 low and high levels at the 138.47 level. Although, before reaching that level the pair will face the combined support of the monthly S3 and the lower trend line of the triangle at the 140.13 mark.
However, technical analysis done on the pair reveals a possible scenario for the near future of the pair. Namely, a hypothesis can be made for the pair’s movements until the end of summer.
The pair is trading in a descending triangle pattern, which is aimed at the support of the 38.20% Fibonacci retracement level of the 2016 low and high levels at the 138.47 level. Although, before reaching that level the pair will face the combined support of the monthly S3 and the lower trend line of the triangle at the 140.13 mark.
