GBP/JPY produced a bullish candle yesterday. The combination of the last two candles is called ‘track rail,’ which is a strong bullish reversal pattern. The H1 chart shows that the price made a breakout at yesterday’s highest high and traded above the level for several candles. The price seems to have found its resistance. If the breakout level holds the price and produces a bullish reversal candle, the buyers may get an opportunity to go long in the pair.
Chart 1 GBP/JPY H1 Chart
The chart shows that the price made a strong bullish move and had a rejection at the level of 139.650. The price made a bearish correction and made a breakout at the level upon producing a bullish engulfing candle. It headed towards the North further and produced an inverted hammer. As of writing, the price has been bearish in the current candle. If the candle closes within the breakout level and the level produces a bullish reversal candle, the buyers may go long in the pair above the level of 139.785.
Trade Summary:
Entry: Buy above 139.785
Stop Loss: Below 139.650
Take Profit 1: 140.065
Take Profit 2: 140.150
Take Profit 3: 140.300