GBP/JPY Technical Analysis: Awaiting violation of narrowing price range

• The GBP/JPY has charted a narrowing price range, also known as the pennant pattern, over the last seven days.
• A break above the pennant resistance, currently seen at 148.81, would signal a continuation of the rally from the Sept. 6 low of 142.61 and could yield a re-test of the recent high of 149.72.
• A pennant breakdown, if confirmed, would signal a bullish-to-bearish trend change and may yield a drop below 147.00.

Hourly Chart

Spot Rate: 148.55

Daily High: 148.60

Daily Low: 148.16

Trend: Neutral

Resistance

R1: 148.81 (pennant hurdle)

R2: 149.10 (Sept. 26 high)

R3: 149.72 (Sept. 21 high)

Support

S1: 148.21 (200-day MA)

S2: 147.60 (previous day's low)

S3: 146.95 (Sept. 24 low)