FX.co ★ Technical Analysis of GBP/JPY for November 28, 2014

The pound sterling has been consolidating for 7 sessions in a row. It tried to breach 186.15 multiple times, but failed to breach that. As of now, this week the pair made a triple top at 186.15. Ahead of the Japanese data, the JPY looks very weak. The cross opened on a bullish note, opened lower at 185.21. As of now, in Asia's session, the cross made high at 185.87. Safe buying will take place above 186.20. The pound is continuing its winning streak for 6 weeks. The pair has support at 185.00 and 183.99. In case if the prices close above 186.15 on a daily basis, the pair challenges 186.90, 187.45, and 188.30. On the hourly charts, the cross is forming an ascending triangle. The height of the triangle is 2.16 pips. The support levels are rising, representing further initial bullishness. In case if the prices give an upside breakout, we can expect further green bars the next week as well. In case, if the prices again rejected at the higher levels between 186.00 and 186.15, we can expect panic selling towards 185.00; huge panic will be created below 185.00. While I am preparing this article, the prices are facing strong resistance at 185.87 (8hr high). The hourly RSI is indicating further bullishness. We recommend traders waiting patiently for a clear confirmation of a breakout on the higher side. Today, the pound sterlinglooks weak against the US dollar.

Trade:

Buying above 186.20.

Selling below 185.00.