The GBP/JPY pair has recently broken out of a long-term right-angled triangle pattern, signaling a potential bullish trend. The pair decisively broke above the upper boundary of the triangle, reaching a high of 198.44 on Wednesday.
The first upside target for the breakout is at 199.59, which corresponds to the 61.8% Fibonacci extension of the triangle’s height. A break above Wednesday’s high would confirm the bullish momentum and increase the likelihood of reaching the target.
The Relative Strength Index (RSI) is currently below the overbought level of 70, indicating that there is still room for further upside.
