Inverted Head and shoulder Long GBP/JPY
Overall it has been a bearish trend following the GBP/JPY in recent weeks trending below both the 100 EMA and 150 SMA. Prices testing Critical support zones in a symmetric triangle. A inverted head and shoulder has come into formation with prices testing recent support levels (129.600), keying up a reversal to possible previous high of (134.875).
For an entry and target confirmation strategy the Fibonacci extension after the inverted head and shoulder formation ( low, 130.840/ high, 132.800) showed a retest of the neckline ( 50% 131.819) with bullish intent also the 1.618 level on the Fibonacci extension matched almost perfectly with previous high (134.875).
If price level breaks previous high, resistances levels becomes supports levels and the other critical resistance would be at high 136.400 also matching up closely with the 2.618 Fibonacci extension levels.
For an entry and target confirmation strategy the Fibonacci extension after the inverted head and shoulder formation ( low, 130.840/ high, 132.800) showed a retest of the neckline ( 50% 131.819) with bullish intent also the 1.618 level on the Fibonacci extension matched almost perfectly with previous high (134.875).
If price level breaks previous high, resistances levels becomes supports levels and the other critical resistance would be at high 136.400 also matching up closely with the 2.618 Fibonacci extension levels.