Pound Sterling Outlook: GBP/JPY Price Printing New Multi-Month Low
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GBP/JPY Price Forecast
GBP/JPY – The Sellers are Back
On Monday, GBP/JPY sellers ended the trendless move and forced the pair to close below 135.55 after failing six times since last month. Today, the pair printed 133.85 - its lowest level in over six months.
On Monday, the Relative Strength Index (RSI) dropped towards the oversold territory then remained flat, indicating the sellers are dominating with a bit of hesitation.
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GBP/JPY DAILY PRICE CHART (JAN 13, 2017 – JULY 18, 2019) Zoomed out
GBP/JPY DAILY PRICE CHART (May 23 – JULY 18, 2019) Zoomed IN
Looking at the daily chart we notice at the start of this week GBP/JPY moved to a lower trading zone 133.40 – 135.55 eyeing a test of the low- end of this range.
Its worth noting that a close below the low-end could send the price to test the yearly support at 132.37, however the weekly support level at 133.00 would be worth monitoring.
In turn, any failure to close below the low-end may cause a rally towards the high-end of this zone although, the daily resistance level underlined on the chart should be considered. See the chart (zoomed in) to know more about the significant resistance levels in a further bullish scenario.
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GBP/JPY Four-HOUR PRICE CHART (JunLY 10 – July 18, 2019)
Looking at the four-hour chart, we notice yesterday GBP/JPY tried to recover some of the recent losses however, stopped at 134.62 and fell back therefore, a break above this level may send the price towards the high-end of the aforementioned trading zone although, the daily resistance marked on the chart needs to be monitored.
On the other hand, if the pair continues to fall, then a break below the 133.00 handle could press the price towards 132.02 however, the yearly support mentioned above (see the chart) should be watched closely.
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.