The currency at the bottom formed a Double Bottom pattern and a breakout was seen in the pair which led the pair to higher levels. At higher levels the buyer has been exhausted and there seems there are no more buyers in the market.

We can't say this as a throwback of the pattern breakout as the pattern has met its target. It would be very early to say the trend has changed, we would say this move as a retracement move and we will trade accordingly.

If the pair closes below the envelope we will go short in the currency pair.

The RSI is following the price and we expect to do so ahead.

GBP/JPY

Oct 30 2021