# GBPJPY Potential Reversal (Nov 26, 2014)

Source: https://www.tradersway.com/resources/market-info/gbpjpy-potential-reversal-nov-26-2014/
Language: en
Updated: 2014-11-26

GBPJPY formed a double top pattern on its 1-hour forex chart, hinting that a potential sellof is in the cards.



The pair is still a hundred pips away from testing the neckline support at the 184.00 levels.



A break below the neckline could send GBPJPY lower by as much as 200 pips, which is the same height as the chart pattern. Stochastic is heading south and indicating a pickup in selling momentum anyway, which suggests that a test of the neckline is possible.



A bounce off 184.00 could lead to the formation of another top at the 186.00 handle, which could either lead to range-bound movement or a triple top pattern, which is still a valid reversal formation. Both the BOE and BOJ are holding dovish biases, as the former shifted to a more cautious stance while the latter actually implemented additional easing recently.



![GBPJPY Potential Reversal (Nov 26, 2014)]



Event risks for this trade setup today include the release of the U.K. second GDP estimate, which could see no change at 0.7%. There are no major reports up for release from Japan, leaving yen pairs sensitive to risk sentiment as well.



*By Kate Curtis from Trader’s Way*