By Admiral Markets
The so popular “Dragon”, or GBP/JPY currency pair has really showed substantial movement within the bearish context. At this point we can spot running (still shaping up) rising wedge pattern. The running rising wedge can occur after a sharp retracement to the top of the wedge and then fall or as the wedge breakout below the low. LVZ pattern (red rectangle) marks low volatility zone and we might expect movement soon. If the pair starts a retracement watch for 127.00-15 zone (LVZ, Bearish order block, EMA89) rejection. If we don’t see any retracement a breakout below 126.35 might tank the pair down to 125.94. Only a 4h close below 125.94 might further weaken the pair towards 124.90.
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Article by Admiral Markets
Source: GBP/JPY contained in Rising Wedge pattern
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