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- GBP/JPY Technical Strategy: Flat
- Support: 194.39, 193.47, 192.32
- Resistance: 195.89, 197.10, 198.31
The British Pound looks set to challenge mid-June highs below the 196.00 figure after edging past another level of technical resistance. A daily close above the 195.82-89 area (June 18 high, 38.2% Fibonacci expansion) exposes the 50% level at 197.10. Alternatively, a turn back below the 23.6% Fib at 194.39 opens the door for a challenge of the 14.6% expansion at 193.47.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com