Forex Blog

The British pound also seems to be preparing to stage a continuation of a bearish trend against the Japanese yen. The currency pair has been consolidating inside a symmetrical triangle since December 2019 on a weekly chart. And its current long-term downtrend dates back to the beginning of 2018. The current chart formation can be used for a bearish breakout setup.

You can see the triangle shown using the yellow lines on the image below. The cyan line marks my entry in case of a breakout (it is placed at 10% of the triangle’s base width below the lower border). I will set my take-profit to where the green line is located. It is placed at 100% of the triangle’s width below the lower border. I will set my stop-loss to the triangle’s highest level (147.945). I won’t trade if the pattern is broken to the upside and will cancel this trading setup in that case.

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this GBP/JPY pattern. You can trade it using my free Chart Pattern Helper EA.

Update 2021-01-16: The setup had to be cancelled as the price action has now invalidated the symmetrical triangle pattern completely:

If you have any questions or comments regarding this symmetrical triangle on the GBP/JPY chart, please feel free to submit them via the form below.