Good morning traders,
After returning to daily resistance, one thing we haven’t talked about in GBP/JPY, is the huge ascending triangle pattern that has formed.
Take a look on the daily chart below:
If you compare where we are now to the horizontal resistance level that we’ve been talking about shorting on our previous blog (linked to above), you can see that the trading idea has been playing out nicely.
But if price is going to print a daily lower low then it will have to break through trend line support at the bottom of the triangle.
Can you see this happening or are you going to play for a breakout of the ascending triangle to the upside as the textbook says? Let us know by mentioning @VantageFX on Twitter.
Best of probabilities to you!
Dane Williams – @VantageFX
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Source: Vantage FX Blog