LISTEN TO THE AUDIO VERSION AND SAVE TIME
- GBP/JPY Price Action
- UK Prime Minister forms a Brexit Focussed Government.
GBP/JPY – BACK TO CONSOLIDATION
On July 15 GBP/JPY continued its downside move and on the following days printed new multi-month low at 133.85. However, the price rallied after and Yesterday closed above 135.00 handle. Alongside this, on July 17 the (RSI) U-turned from below 30 towards 35 then remained flat after, emphasizing the sellers losing momentum on one hand, and the buyers unable to be in charge on the other.
Looking at the daily chart we notice last week GBP/JPY entered the lower trading zone 133.40 – 133.55 and stuck after in a trendless move. Yesterday, the pair printed its highest level in a week, however, failed to test the high end of the current trading zone.
Therefore, if the buyers were successful to force a close above the high end of the zone, this may lead the price towards 136.40. Although, the weekly resistance level underlined on the chart should be kept in focus.
On the other side, any failure to close above the high end of the zone this could send the price towards the low end. However, the weekly support level underscored on the chart needs to be monitored. See the chart (zoomed in) to know more about the next trading zone with the key support levels, if the sellers continue leading the price lower.
A successful break above the resistance level will even drive Pound Higher and Bears will have lost the battle.