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GBPJPY is forming a potential ABCD pattern!

Monday, April 30, 2018 10:23 AM GMT

Some analysts believe that BOE will delay the next rate hike because of the lower than anticipated GDP previous week. Today’ agenda is not having major GBP or JPY news, however; we do expect US news that can shake the forex market.

GBPJPY stays under selling pressure and the bias is strongly bearish. According to H4 timeframe, the pair is already moving below 200 SMA, while it is potentially forming an ABCD pattern targeting even lower than the current level. The ABCD’s target is near to a major Fibonacci retracement level, 78.6% where buyers may step in and try to hold the level.


Heading to the hourly timeframe, the pair is flirting with another downside breakout. We have added Fibo extension levels where traders may look for the next potential downward targets. If GBPJPY moves above 150.5 then it will negate the short-term negative outlook.



(EMA = Exponential Moving Average, SMA = Simple Moving Average, 5EMA = Blue, 21EMA = White, 200SMA = Yellow)

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.

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