Current Price: 192.862 Buy Zone: After closing above 195.971 Stop-Loss: 189.488 Target: 205
Analysis:
Parallel Channel: GBP/JPY is trading within a parallel channel, indicating a structured range between support and resistance. This suggests the market is respecting these levels, and a break above the upper trendline (195.971) would confirm the bullish breakout.
Fibonacci Extension: Using Fibonacci levels as a tool to project future price movements, the extension aligns with the 205.161 target, a significant level based on the projected price move. This target could coincide with key resistance levels.
Risk/Reward: With a stop-loss at 189.488 and a target of 205, the trade offers a favorable risk-to-reward ratio, ensuring good potential profits relative to the risk.
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