GBP/JPY 1H Chart: Symmetrical Triangle

The British Pound is concentrating against the Japanese Yen in a one week long symmetrical triangle. In many cases, formation of such figures represents anticipation of certain fundamental events. In this particular situation, such event might represent either the British PM May's or Governor Carney's speeches at the Bank of England's conference. From technical point of view, a breakout to the south seems a more realistic scenario, as the pair faces continuous pressure from the overhanging 55-, 100- and 200-hour SMAs. In addition to that, the pair has recently made a rebound from the upper edge of a larger ascending channel, which also supports a medium-term downfall. However, there is a need to take into account that the monthly R2 together with the weekly S1 near 150.00 might constrain the fall.