GBPJPY 1H Analysis – Bullish Breakout from Ending Diagonal + AO

Pair: GBP/JPY
Timeframe: 1H
Structure: Wave 5 Ending Diagonal + Bullish Divergence on AO

Hi traders! Here’s an update on GBPJPY from the 1H chart.

After a strong bearish move, price formed a falling wedge (ending diagonal) pattern, indicating exhaustion in the downtrend. This pattern completed with a final Wave 5 that showed significant weakness — and here’s the key signal:

🔍 Bullish Divergence Spotted
While price made a new lower low (Wave 5), the Awesome Oscillator (AO) printed a higher low. This classic bullish divergence hints that bearish momentum is fading and a potential reversal is in play.

📈 Breakout Confirmation
Price has now broken above the wedge and the 1.0 Fibonacci level (~193.67), confirming the breakout and early bullish momentum. We’re currently seeing price pushing up with strong momentum candles.

🎯 Potential Targets Based on Fibonacci Extensions:
• 1.618 – 194.60 (first resistance / TP1)
• 2.618 – 195.35 (TP2)
• 4.236 – 196.45 (extended TP3 if trend continues)

🛑 Key Support:
• 193.00 zone – ideally price should stay above this level to maintain bullish bias.

🧠 Summary:
• Falling wedge (ending diagonal) completed as Wave 5
• AO bullish divergence signals weakening sell pressure
• Breakout confirmed above 193.70
• Watching for continuation toward 194.60 and 195.30+

📌 I’ll be watching for a potential pullback above 193.70 for a high-probability reentry opportunity. Always manage your risk and trade what you see.

Let me know your thoughts in the comments below! 📥

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