GBPJPY POSSIBLE SETUP.
Though I'm making this analysis on the 4H chart, but then it's worth to keep track of what's happening on the daily chart.
On the daily chart price have been trading inside a descending triangle since 2017 until now, price is now approaching the trendline of the said descending triangle.
We also have the outlined rising WEDGE PATTERN on the 4H chart, with 2 touches on resistance rail and 2 touches on the support rail, inside which price been trading since late December 2020 until now, with the blackline indicated horizontal resistance level @ 142.30 where price have been rejected overtime.
Price is getting to the APEX of the WEDGE PATTERN which is telling we will soon have a breakout, a break below the support rail of the WEDGE PATTERN will definitely set price lower.
WHILE, a push above the horizontal resistance @ 142.30 will set price higher to make a proper retest of the resistance zone @ 142.90 of the overall descending triangle on the bigger timeframe, and also make a 3rd touch of the resistance rail of the WEDGE PATTERN.
Then we will wait for price action in the zone for more SETUP.
On the daily chart price have been trading inside a descending triangle since 2017 until now, price is now approaching the trendline of the said descending triangle.
We also have the outlined rising WEDGE PATTERN on the 4H chart, with 2 touches on resistance rail and 2 touches on the support rail, inside which price been trading since late December 2020 until now, with the blackline indicated horizontal resistance level @ 142.30 where price have been rejected overtime.
Price is getting to the APEX of the WEDGE PATTERN which is telling we will soon have a breakout, a break below the support rail of the WEDGE PATTERN will definitely set price lower.
WHILE, a push above the horizontal resistance @ 142.30 will set price higher to make a proper retest of the resistance zone @ 142.90 of the overall descending triangle on the bigger timeframe, and also make a 3rd touch of the resistance rail of the WEDGE PATTERN.
Then we will wait for price action in the zone for more SETUP.
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