GBP/JPY 4H Chart: Channel Up

This channel up pattern has recently featured in one of our reports. Then the rate was fluctuating just below the upper boundary of the figure after forming a rising wedge within its boundaries.

As it turned out, the Sterling managed to decouple from the rising resistance line and fell through all of the nearest support levels straight to 170.90. Here the sell-off is expected to come to an end and give way for a strong rally, even though most of the four-hour technical indicators are currently bearish. In the meantime, SWFX market participants are divided in opinions where the currency pair will move—49% of positions are long and 51% are short.