GBP/JPY: Continuing Bullish Trend with Potential Swing Approach.

May 31, 2023

The GBP/JPY currency pair has been maintaining its bullish trend across higher timeframes. In the past few hours, the price reached the area around 174.000, but this morning, it initiated the day with a red candle, indicating a retracement at the moment. It is important to note that the GBP/JPY has a strong correlation with the USD/JPY, and currently, we hold a bullish view on the latter. Following this correlation, we are also considering a potential bullish scenario for the GBP/JPY.

Currently, the price is approaching the 61.8% Fibonacci retracement level from the previous swing in the H4 timeframe. Additionally, there is an AB=CD pattern formation in progress, with the D extension leg targeting around 175.100. Therefore, this becomes our target point for the swing approach strategy.

Considering these factors, we anticipate further upward movement in the GBP/JPY, aligning with the overall bullish trend and the correlation with the USD/JPY. However, it is important to monitor the price action and market conditions closely for any potential changes or developments that may affect this scenario.

Jun 1, 2023

Trade active

Jun 5, 2023

Trade active

The first take profit level is taken, there is a potential for further extension to 175.100.

Jun 9, 2023

Trade closed: target reached