GBP/JPY — Another Pound Pair Consolidates in Symmetrical Triangle

I have already written about a symmetrical triangle on GBP/CHF weekly chart 2 weeks ago. Today, you can see a similar pattern but with a different trend direction on the daily chart of the pound/yen pair. This consolidation finishes off the uptrend that lasted from October through mid-December and offers a nice opportunity to go long in case of an upper border breakout.
The pattern is marked with the yellow lines on the chart screenshot below. The cyan line will serve as my entry level — it is moved to 10% of the triangle’s height (at the base) above the border. The green line will be my target — it uses 100% of the same distance. I will set my stop-loss to the low of the breakout candle or to the low of the preceding candle if the bigger part of the breakout one will be outside the pattern. A bearish breakout will invalidate this trend continuation pattern. You can click on the image to see a full-size chart:

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this GBP/JPY pattern. You can trade it using my free Chart Pattern Helper EA.
Update 2017-02-26: The pattern is no longer valid due to the downside breakout:

If you have any questions or comments regarding this symmetrical triangle on the GBP/JPY chart, please feel free to submit them via the form below.

Leave a Reply

Your email address will not be published. Required fields are marked *