Good day traders! The rally from this year’s August/September double bottom has retraced 50% of the previous bearish cycle that started in February last year.
Price was knocked sideways after it reached my upper red warning line (red arrow) on the 17th of October. Last week’s high just managed to pip that previous high after which price reversed lower. I’m currently considering the rally that started in September to be corrective with a possible decline to follow soon.
It might be too early to call a top on GBP/JPY, but if price breaks the previous low at 139.28, then we could see a drop towards 138.03. If price manages to break below my center median line, then we could see a decline towards 135.66 or even lower to 130.43.
Until next time, happy and safe trading!