GBP/JPY 4H Chart: Channel Down
- The British Pound is trading against the Japanese Yen in a recently formed descending channel.
- The pattern represents a rebound of the currency exchange rate from the second peak of the double top formation.
- For the moment, the channel has already four confirmation points and, thus, might be broken in the nearest future.
- It is possible that an impulse given by a combination of the 200-period SMA and the monthly PP at 143.89 will be strong enough to push the rate though the upper edge of the channel.
- This scenario is supported by the fact that the northern side is not backed up by any meaningful barriers except for the updated weekly PP at 145.39.
- Nevertheless, taking into account the way the rate moved previously, it is unlikely that it would climb so vertically to reach that resistance line.
