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Non-Standard Bullish Pennant on GBP/JPY Daily Chart

November 3, 2019 (Last updated on November 19, 2019) by

The bullish pennant pattern that has formed on the daily timeframe of GBP/JPY chart doesn’t look like a classical example of a bullish pennant. The pole of the pattern consists of several candles and lasts for almost as long as the pennant part. I believe that this doesn’t invalidate the trade setup offered by this formation. More important to me seems the fact that the pennant occurs inside an uptrend.

The chart below shows the pattern marked with the yellow lines. My potential entry level is marked with the cyan line. It is placed at 10% of the pole’s length above the upper border. My potential take-profit level is shown with the green line, which is located at 100% of the pole’s length above the upper border. My stop-loss will be set to the lowest point of the pennant part of the pattern. I will ignore bearish breakouts from this bullish pennant. You can see a full-size chart by clicking on the screenshot:

GBP/JPY - Bullish Pennant Pattern on Daily Chart as of 2019-11-03

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 2019-11-19: The currency pair has hit my entry level trigger yesterday at 7:09 GMT. The position’s open rate is 140.788 with stop-loss at 139.391 and take-profit at 150.765:

GBP/JPY - Bullish Pennant Pattern on Daily Chart as of 2019-11-19 - Post-Entry Screenshot

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

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