During Tuesday’s trading session, the futures of British Pound soared 0.30%, advancing 0.12% this week. Find out with us what to expect from the coming sessions for this group.
The bearish cycle completion
The British Pound (6B) futures daily chart shows the end of a wave C of Cycle degree. The corrective sequence started on April 17, 2018, when the price found resistance at 1.4430. If we observe the segment B-C, its accomplishes the five waves requirement.
From the 6B 4-hour chart, we observe an ascending movement supported by increasing volume. The surpass and close of the price above the 1.2233 level, should validate the end of the bearish cycle.
The trade opportunity
The increment of long positions reported on the last CoT for Japanese Yen (6J), make us expect high volatility for the yen group. Backed by this argument, and the technical figure, we identify a potential inverted H&S pattern. If GBPJPY closes above 129.63, the inverted H&S figure will be active. The technical profit target of this potential pattern is at 132.802. We foresee as second potential profit target at 135.26. The invalidation level of our scenario is at 127.437.