Remain Short GBPJPY (Move Stop to 131.75)
The GBPJPY extended yesterday’s losses and looks poised to continue its southern journey as price action remains bounded by its descending 15 minute channel and the 200-day simple moving average. Indeed, I am short from 132.17, and will look to place my stop at 131.75 in order to book some profits. My target of 130.73 was nearly hit as the pair reached an intraday low of 130.88. Looking ahead, I will look to take 2/3 of my position at 131.30, and the last 1/3 at 130.73. Going forward, GBP traders will shift their focus to the Bank of England interest rate decision. As of late, traders are pricing in a 17.0 percent chance that the BoE of England will hike rates twenty five basis points as inflation concerns continue to gather pace.
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