GBP/JPY 1H Chart: Triangle

Pair has been narrowing it's trading range sine the first week of September, which is when the pattern was formed. It narrowed from 440 pips then to 45 pips recently. Pair is trading in the last decimal (of the pattern's length) which indicates increased probability of a breakout. Speaking about that, it seems slightly more likely that we will see a bearish outbreak. Short term technicals give bearish aggregate signal, even if marginally stronger. Market sentiment is strongly bearish as well—69% of traders already short on the pair. The fact that 61% of pending orders are set to go short as well suggests that majority of traders plan to capitalize on such move and we might see minor rally.