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GBPJPY WEEKLY

It’s been a while since the weekly chart has been updated, a lot of price action has developed since then.

Strong start to the year for the GBP, as key level after key level continues to be broken. Nevertheless taking a look at the overall price structure we have a descending channel which if the weekly closes in and above the 148.00 region it would be a strong confirmed breakout to the upside. 

The 200EMA currents hovers just above the 150.000 monthly key level, so I would view that as a strong take profit region if we see a firm above 148.00 and 147.50. 

I can see an inverse head and shoulders patter forming also, so current price action could be looking to meet the neckline around the 149.250 region potentially spiking sharply to the 150.000 key level. Following this we may see a sharp pullback in the Pound in order to create the remaining shoulder. 

Currently favoring long positions on the GBP due to the increased hopes of a no-deal Brexit scenario coming out of the picture. The daily timeframe shows slight exhaustion so i will be stepping back to wait for the weekly candle closure.

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