In our last report about the GBP/JPY currency pair from April 17 we said the pair had a golden cross on the daily chart but we sold the pair until seeing a bullish price action. Indeed, we saw the bullish pin bar on the same day and bought the pair, which achieved all of our targets by more than +540 pips in just one trading week.
After the pair broke the down trend line which started last December, we saw the GBP/JPY rally to rise by more than 1150 pips till now. The pair is trading inside a price channel which still supports the positive movement. The moving average is below the prices which represent a support area, while the Stochastic indicator gave a lot of overbought processes. The pair is still rising ahead of the last top 148.47.
The Next Few Days
Based on this analysis of the H4 chart we can buy the pair now from the current prices at 146.90, keeping our first target at 148.40 and the second one at 150.10, that is in case the pair is still trading inside the price channel. However, if we see it break the channel down we can sell it, especially considering the cash rate decision this week.
We have to be careful in the upcoming days regarding hot news like the Official Bank Rate and Manufacturing Production from the UK next Thursday.
