Sell GBPJPY Triangle BreakoutThe GBP/JPY pair presents a potential selling opportunity on the H1 timeframe, fueled by a recent bearish breakout from a triangular consolidation pattern.
Key Points:
Bullish Triangle Breakout: Though seemingly counterintuitive, the price has broken downward from a bullish triangle formation, characterized by converging resistance and support lines. This often indicates a reversal of the prior upward trend and a shift in momentum towards the downside.
Sell Entry: Consider entering a short position around the current price near 187.40, offering an entry point close to the breakout level.
Target Levels: Initial bearish targets lie at the support levels of 186.05 and 185.16, marking previous support zones within the triangle.
Stop-Loss: To manage risk, place a stop-loss order above the resistance line of the broken triangle at 188.70
Fundamental Updates :
Bank of England (BoE) Meeting and Interest Rate Decision (Feb 2): While the BoE is expected to raise rates again, the focus will be on the size (25bps or 50bps) and future policy guidance. Dovish pronouncements could weaken the GBP and benefit selling GBP/JPY.
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