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GBP/JPY Knocking on the Door of Bullish Continuation

With the GBP/USD in a bullish breakout from a consolidation range, it is interesting to see that GBP/JPY is also in an attempt to breakout from a period of consolidation.

GBP/JPY 4H Chart 8/18
(click to enlarge)

The 4H chart shows a market in choppy consolidation price action, with a slight bullish tilt. Price for the most part has held above the cluster of 200-, 100-, and 50-period simple moving averages (SMAs). The latest 4H bullish candle going from just above 193.50 to 195.25 was an impressive one and might be a sign of bullish extension ahead. A break above 195.30 would be a bullish continuation signal. 

GBP/JPY Daily Chart 8/18
(click to enlarge)

In the daily chart we can see that the prevailing trend is indeed bullish until June. But after a V-Shape reversal upwards in July, the pair looks bullish again. Therefore, we can say that if price climbs above 195.30, there is upside risk towards 195.87, and possibly higher in extension of the prevailing uptrend.