GBP/JPY GANN Analysis – Next Six Quarter Prognosis is Bullish

European currencies are still dealing with the aftermath of the UK’s Brexit referendum decision last June. The UK government is expected to invoke Article 50, which will formally launch exit proceedings, by the end of March. The UK economy held up remarkably well in H2 2016, prompting the Bank of England to adopt a neutral policy bias. We continue to feel that the pound (GBP) is vulnerable to growth disappointment and uncertainty surrounding the EU exit process, however, and forecast GBP is going to strengthen in next few months.

The Japanese yen (JPY) was the worst-performing G-10 currency in Q4, reflecting rising US interest rates and wider US-Japan rate differentials at the long-end of the curve as well as JPY under-performance in a generally pro-risk environment as US equity markets rose following the election.

We shall look at GBP/JPY in long term basis how it’s behave and how it’s expected to behave in the next 6 quarters. Analysis is presented angles providing Confluence and having true 3D projected move picture.

GBP/JPY on weekly chart establish bearish A Cypher PRZ validated and it works perfectly. Price on PRZ breakout took Southward train momentum remains very stable and high, GANN angle 45 adopted showing perfect bearish equilibrium. Now price seems to loose bearish influence. Effect of Bearish W harmonic vanishing and GBPJPY on weekly warming up to take Northward train.

Price has upward swing at 124.782 and swing failure validated establishing reversal of price. Price zone 138.586 to 136.578 is indecision Zone Price after reversal break. A positive sign for GBPJPY Bullish Rally start.

Price is forming Continuation pattern Flag. On break out it would take Upward Rally.

GANN study of Square 9 Natural Levels shows that after reversing price rejected from 180 Degree Gann angle (148.186) have 90 Degree correction and right now struggling at GANN level 90 Degree (136.263). In next 1 week it seems to bounce upward from 90 Degree level.

Channel studies revealed that the pair is under slightly skewed Bullish Channel and is at critical level to start upward rally.

Also the bearish Channel has been break out and price is now retesting the breakout level, providing strong prognosis for start of the bullish rally.

Price has formed skewed double bottom and retesting strong support zone. Also, it makes new lower high, a sign of losing buyer power and seller taking up.

GANN SQUARE of 144 studies revealed that price from the last two month is in bullish zone and gradually taking power.

Based on all above study GBP/JPY have strong bullish biased for the next 6 Quarters till Jun 2018.

RESISTANCE

154.629   170.325 195.284