The GBP/JPY pair on the M30 timeframe presents a potential buying opportunity due to a recent upward breakout from a well-defined bullish channel pattern. This suggests a shift in momentum towards the upside and a higher likelihood of further gains in the coming hours.
Key Points:
Buy Entry: Consider entering a long position (buying) above the broken resistance level of the channel, ideally around 190.50. This offers an entry point close to the perceived shift in momentum.
Target Levels: Initial bullish targets lie at the previous resistance levels within the channel, now acting as potential support zones: 191.25: This represents the first level of resistance within the channel. 191.61: This is a further extension of the upside target, based on the height of the recent price movement before the breakout.
Stop-Loss: To manage risk, place a stop-loss order below the broken resistance line of the channel, ideally around 190.25. This helps limit potential losses if the price unexpectedly reverses and breaks back downwards.
The bullish breakout looks solid, as the price has respected the descending trendline multiple times in the past before the breakout. Price trading above the Ichimoku cloud is also a good sign of bullish momentum entering the market. However, price could pull back towards the descending trendline before resuming the bullish momentum. Let's see what happens.
KABHI_FOREX_TRADING
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@ICmarkets, yes right, ichimoku cloud best for taking entry