GBP/JPY 1H Chart: Channel Up

At the end of May GBP/JPY found strong support in the face of 169.50, which allowed it to start forming a bullish channel. The pattern already consists of 300 bars and has all the chances to become even longer.

However, right now the risks are considered to be heavily skewed to the downside, since the exchange rate is currently fluctuating just beneath the Mar 7 high and the rising trend-line. In case of a sell-off GBP/JPY will be expected to encounter a formidable support at 172.34—a combination of the daily S3 and 200-hour SMA, but the dip is likely to extend even deeper before giving up, specifically down to the lower trend-line at 172.