GBP/JPY 4H Chart: Sets For Bullish Momentum

Technical analysis of Forex market

The Pound Sterling has been trading in a junior descending channel against the Japanese Yen. The currency pair reversed from the upper boundary of the pattern on July 13 and had since remained inside the channel.

During the past two weeks, the exchange rate has been gradually gaining strength. The pair re-tested the upper border of the junior descending channel pattern on August 30.

Given that the price action has moved above the 50-, 100-, and 200-hour SMAs, the currency exchange rate could be set for bullish momentum in long-term. Meanwhile, technical indicators flash a strong buy signal on the 4(H) time-frame.

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