Ascending Triangle on GBP/JPY@ H4 Chart

This week will be another one with a rather strong trading idea at my disposal. The GBP/JPY ascending triangle may look slim, but it is a valid pattern, which was born following an uptrend. It has enough points of contact both with the upper horizontal border and the lower inclined one. The only problem I see is the fact that the formation is only one week long.
The yellow lines mark the triangle itself. The cyan line shows my breakout entry level placed at 10% of the triangle’s height above the border. The green line, located at 100% of the height above the border, will serve me as a take-profit level. I will set the stop-loss to the low of the breakout bar. The risk-to-reward ratio here might come out poor, but I still expect it to be at least 1:1.

The chart was built using the ChannelPattern script. You can download my MetaTrader 4 chart template for this GBP/JPY pattern. It can be traded using my free Chart Pattern Helper EA.
Update 2014-12-02 13:12 GMT: Long position entered at 186.462 at 6:57 GMT today. The breakout looks OK as the pull-back has already ended, in my opinion. My stop-loss is set to 185.653, and my take-profit level is at 188.675. Please have a look at the post entry chart:

Update 2014-12-05 10:22 GMT: Take-profit hit in a GBP/JPY rally at about 6:58 GMT today.


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