GBP/JPY: 4-hour
Let’s start off with my all-time favorite forex play: the break-and-retest setup! As you can see from GBP/JPY’s 4-hour chart above, the pair is in the middle of a correction, with price pulling up to an area of interest. The 38.2% Fibonacci retracement level, which lines up with the 180.00 major psychological handle, seems to be holding as resistance for now but a higher pullback might still be possible. If so, GBP/JPY could still retrace to the 50% Fib, which coincides with a broken support level. Stochastic is already indicating overbought conditions and pound bears might be ready to hop in soon!
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