GBP/JPY Price: Bears Need a Break Below the Weekly Support
GBP/JPY Price Outlook, Charts and Analysis
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GBP/JPY – Bearish Move Developing
On Jun 11, GBP/JPY corrected higher after carving out a higher low at 137.48. The pair faced important resistance levels and the correction move stopped on Jun 11.
The Relative Strength Index (RSI) has been pointing lower since June 11 emphasizing the bears clear intention to resume the sell-off.
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GBP/JPY DAILY PRICE CHART (FEB 21, 2019 – JUnE 14, 2019) Zoomed In
GBP/JPY DAILY PRICE CHART (NOV 10, 2016 – JUnE 14, 2019) Zoomed OUT
A close look at the daily chart shows GBP/JPY looking to resume its bearish move, eyeing to break below the zone at 136.40 – 136.55. Therefore, a close below this zone could kick start a bearish bias towards 133.40. The weekly support at 134.92 and 134.20 need to be watched along the way.
If the price fails to close below the zone mentioned above, a rally could start towards 139.00. However, daily resistances at 137.48 and the vicinity at 138.36- 46 would be worth monitoring.
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GBP/JPY Four-HOUR PRICE CHART (May 29, 2019- JUN 14, 2019)
Looking at the four-hour chart, we notice GBP/JPY testing the Jun 6 low. Next trough to test is the June 4 low, therefore if the pair breaks below 136.55 the bearish momentum may resume eyeing 136.00. Although, the weekly support at 136.40 needs to be cleared first. See the chart for the key levels if the selloff continues below 136.00.
It’s worth noting that GBP/JPY rallied yesterday and stopped at 137.78. Any break above this threshold might send the price towards the June 11 peak (weekly high) at 138.32. However, the resistance at 138.24 (Jun 22 high) needs to be kept in focus.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.