We are seeing a classic technical squeeze, with price action moving between two key trendlines:
Green Trendline (Bullish Support): This ascending trendline has been respected since mid-2020, marking a strong uptrend. Each pullback has been met with higher lows, keeping the bullish momentum intact.
Red Trendline (Bearish Resistance): Since late 2023, GBP/JPY has been making lower highs, creating a descending trendline. This forms a clear triangle pattern, signaling indecision and tightening price action.
Current Situation: Price is at a critical point, trading right where the bullish support and bearish resistance converge. A breakout in either direction could signal the next major move:
Potential moves:
Break above the red trendline = Potential continuation of the long-term uptrend.
Break below the green trendline = Possible trend reversal, opening room for deeper downside.
The next few monthly candles will be crucial—watch for strong closes outside the triangle.
Green Trendline (Bullish Support): This ascending trendline has been respected since mid-2020, marking a strong uptrend. Each pullback has been met with higher lows, keeping the bullish momentum intact.
Red Trendline (Bearish Resistance): Since late 2023, GBP/JPY has been making lower highs, creating a descending trendline. This forms a clear triangle pattern, signaling indecision and tightening price action.
Current Situation: Price is at a critical point, trading right where the bullish support and bearish resistance converge. A breakout in either direction could signal the next major move:
Potential moves:
Break above the red trendline = Potential continuation of the long-term uptrend.
Break below the green trendline = Possible trend reversal, opening room for deeper downside.
The next few monthly candles will be crucial—watch for strong closes outside the triangle.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.