GBP/JPY hints at a forming positive pattern - Technical Analysis - 13-01-2016
GBP/JPY gained ground in the intraday levels trading, after the support of 169.35 held on for the second time, hinting thereafter at a positive technical pattern that is forming currently in the short term, which is the Double Bottom pattern as shown in the attached chart. The pair moved through the simple moving average for the period 50 in its last upward spiral, attempting to rid itself from its negative pressure, along with the venting-off of overbought saturation apparent in relative power indicators.
Therefore we expect more gains for the pair, but first it has to confirm that forming pattern by breaching its ceiling at the resistance of 172.26 and closing above it, targeting thereafter the resistance of 173.80.
Trend
Bullish