Thursday, following the weekly opening price, the GBPJPY cross advanced 0.25%. In the post “Decoding the ‘1-2-3’ Pattern Using Price Action”, was discussed the configuration of this structure. Now we let see an application of this pattern in the GBPJPY cross.
Our trade setup
Once the breakout happened during Thursday’s trading session, we are expecting new highs for the cross. The potential new buying zone should be between 135 and 134.9. Once the previous highs which acted as resistance have been surpassed, they should act as a support. The latest bullish cycle should drive the price to the early July highs. We foresee a bullish target at 137.01 area. The invalidation of this scenario occurs if the price drops and closes below 134.25.
This chart is an application of the 1-2-3 Pattern and doesn’t represent an investment recommendation.