# GBP/JPY Double Bottom (February 6, 2014)

Source: https://www.tradersway.com/resources/market-info/gbp-jpy-double-bottom-february-6-2014/
Language: en
Updated: 2014-02-06

A classic reversal chart pattern has formed on GBP/JPY’s 1-hour time frame, indicating that the recent selloff is almost over. However, the pair has yet to make a break above the neckline of the formation before a rally is confirmed.



Take note that stochastic is already in the overbought zone and looks ready to cross down, which means that a bit of consolidation or pullback might be in the cards before an actual upside break.



![GBP/JPY Double Bottom (February 6, 2014)]



Going long above the 166.00 major psychological resistance with a stop around 165.00 or lower and a target of 200 pips could make close to a 2:1 return on risk. Bear in mind that the chart pattern is roughly 200 pips in height, which suggests that the potential breakout could be of the same size.



*By Kate Curtis from Trader’s Way*