Autochartist recently identified the daily Flag chart pattern on the GBP/JPY charts.
The Quality of this chart pattern is equal to 8 bars which reflects the strong Initial trend (10 bars), above-average Uniformity (6 bars) and significant Clarity (8 bars). High Initial Trend of this chart pattern indicates the strength of the previous upward price thrust from the strong support level 119.00 (it had reversed the pair up a few times form the beginning of 2009). Point D was formed when the pair turned up from 38,2% Fibonacci Correction of the preceding upward price thrust from 119.00. This chart pattern encloses the well-formed ABC correction to the previous upward price impulse.
GBP/JPY is expected to continue upward movement toward the upper resistance trendline of this Flag.
The daily GBP/JPY chart below shows the aforementioned support levels:
