The broad US Dollar’ weakness has fuelled the Sterling and today continues to move steeply upwards and marks new post Brexit highs. GBP/USD is seen firmly above 1.40 and bulls are preparing to conquer the 1.44 level. Sterling’s strength mirrors the GBP/JPY pair, which is also enjoys uptrend.
Since late August 2017 the GBP/JPY pair has been developing within ascending channel with upper side formed by the highs in late October and early November. As seen on the daily chart the highs seen in late September and early October give some false signs from the uptrend channel viewpoint, but it provides other options for validation up and down to make it appropriate despite them.
Currently the pair is located in the middle of the channel and it seems that feels very comfortable over there and is not planning to abandon it soon. RSI and stochastic remains within positive territory but are staring to lose upward strength and that suggest bulls to pause and take deep breath before next upleg. So the pair might meet support around 153.50 – 153.40. Looking to the upside I expect during next sessions test of 159.90 – Brexit level and upper side of the channel.
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