GBP/JPY - At Bottom Of Precise Bullish Channel

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GBP/JPY - At Bottom Of Precise Bullish Channel

By James Chen on April 22, 2009 | More Posts By James Chen | Author's Website

GBP/JPY, as shown on the daily chart, has formed a precise parallel uptrend channel that has been in place since late January, with four downside touches and three upside touches thus far. Currently, price is near the very bottom of this channel. In the event of a potential subsequent breakdown of this channel, a further breakdown below the key support/resistance around 141.50 should be a strong bearish signal for this pair.

A pronounced bounce up off the bottom of the channel, however, which would be confirmed on a strong break above 145.00, should target further resistance levels to the upside within the context of the rising channel.

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