- Harmonic pattern formed – Bullish AB=CD
- Potential reversal Zone – 139.50
- GBP/JPY formed a minor bottom around 139.53 and shown a minor jump from that level. It is currently trading around 140.40.
- UK Pound was trading weak against all majors after UK election results. Sterling ended last week as weakest major currency as may struggles to form a minority government after winning just 318 seats eight short of majority.
- In the 4hour chart the pair has formed Bullish AB= CD pattern and any minor weakness can be seen only below 139.50.
- On the higher side, near term resistance is around 141.27 (21 4H EMA) and any break above will take the pair till 142.25 (61.8% retracement of 143.95)/143.
It is good to buy on dips around 140.10-20 with SL around 139.50 for the TP of 141.25/142.30.
