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GBP/JPY - Anticipating More Expanded Consolidation

Looking at GBP/JPY in the 1H chart, we can see that price has essentially started trading sideways since the end of September. This is a consolidation after a bearish swing.

GBP/JPY 1H Chart 10/5/2015

(click to enlarge)

We can also see in the 1H chart that the consolidation has higher highs and lower lows - an expanded consolidation. If this pattern is to continue, we should expect another push below 181, perhaps towards 180.50. If price does get to 180.50, we might consider buying. The prevailing downtrend is no longer valid at least in the 1H chart, so we would be buying a sideways market that extended lower. (We should watch the 1H RSI to be around 30 as well).

GBP/JPY 4H chart 10/5

(click to enlarge)

Another reason we might consider buying around 180.50 is that 180.34 is the September-low, which is also the low since May. Now because there is no prevailing uptrend here in the medium-term to, the upside risk will have to be limited to the 184-184.50 support/resistance pivot area seen in the 4H chart.