GBP/JPY has been bullish in the daily chart. The chart produced a bullish engulfing candle at a significant level since then the price has been heading towards the North. Yesterday’s candle came out as a bullish candle. Thus intraday traders may wait to go long in the pair and push the price towards the North further. Let us now have a look at three major charts.
Chart 1 GBP/JPY Daily Chart
The chart shows that the price consolidated around the level of 134.300 and produced a bullish engulfing candle. It made a breakout at the level of 135.850 and traded above the level. Yesterday’s candle came out as a bullish candle with a long lower shadow. Thus, the buyers may wait for the price to make a breakout at 136.580 to go long in the pair. The price may find its next resistance around 139.000. Ideally, the buyers shall wait for the price to consolidate and produce a bullish reversal candle around the level where it is trading now to get a better risk-reward.
Chart 2 GBP/JPY H4 Chart
The chart shows that the price had a bounce at the level of 135.450 and produced a bullish engulfing candle. The level worked as a level of resistance earlier. Thus, the buyers must have been keen to get a bullish reversal candle to go long above the level of 136.355. The price may get more bullish above 136.585. It may find its next resistance around 137.100. Since the daily chart’s resistance allows the price to move towards the North further, the H4 buyers may add more positions and push the price towards the level of 139.000.
Chart 3 GBP/JPY H1 Chart
The chart shows that the price after being bullish had a rejection at 136.370. It then made a bearish correction and headed towards the North. It made a breakout at 136.370 and traded above the level for a number of candles. The price has been in consolidation around the level. As of writing, the last two candles came out as bullish candles. Thus, intraday traders in the minor charts may look for buying opportunities and push the price towards the North. The price may find its next resistance around 136.900. As discussed, the H4 chart is bullish biased and offers enough room for the price to travel towards the upside. Thus, H1 buyers may hold and add more buying positions.
The daily chart is bullish biased. The H4 and the H1 chart look very good for the buyers. Considering these three charts, it seems that the price may make a bullish move and end up producing a bullish candle in the daily chart today.