FxWirePro: GBPJPY forms price channel pattern, good to buy on dips

Pattern- Price Channel

Major support- 128.70

The pair is consolidating in a narrow range inside channel for the past 2weeks. It has formed a temporary top around 130.69 on Aug 22nd, 2019 and shown a more than 200 pips decline on strong yen. The yen was trading slightly strong on trade escalation between US-China. GBPJPY hits low of 128.47 and are currently trading around 128.47 yesterday and are currently trading around 129.25.

USDJPY is in a narrow range between 106.41 and 105.59 for the past two trading days. Any major bearish continuation only below 104.40 levels.

Technically, the pair is facing strong support around 128.25-50 which is acting as buying zone for most the traders. Any minor trend reversal only below 128 and any break below targets 126.50.

The near term resistance is around 129.70 and any violation above will take the pair till 130/130.40. Any major reversal only above 130.69.

It is good to buy on dips around 128.75-80 with SL around 128 for the TP of 130.40.