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GBP/USD, GBP/JPY Price - British Pound May Keep Rallying Above these Levels

GBP/USD, GBP/JPY Price - British Pound May Keep Rallying Above these Levels

2019-10-16 10:15:00
Mahmoud Alkudsi, Analyst
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GBP/USD and GBP/JPY Technical Forecast

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Super Sterling Pound

On Oct 10, Sterling pound started to gain territory against US Dollar and Japanese Yen. Since then GBP/USD took off crushing well known resistance levels gaining nearly 4.7% until yesterday. Similarly, GBP/JPY pushed higher gained nearly 5.9%.

The Relative Strength Index (RSI) crossed above 50 highlighting the end of downtrend move and a fresh start of uptrend momentum.

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GBP/USD DAILY PRICE CHART (June 8, 2017 – Oct 16, 2019) Zoomed out

GBPUSD price daily chart 16-10-19 zoomed out

GBP/USD DAILY PRICE CHART (March 10 – Oct 16, 2019) Zoomed IN

GBPUSD price daily chart 16-10-19 zoomed in

From the daily chart, we notice on Thursday GBP/USD buyers showed strength leading the pair to close above 50-Day average and 1.2360. This week, the price continued its rally and pushed to a higher trading zone 1.2550 – 1.2785 . Yesterday, the pair rebounded nearby the high end of it.

Thus, a close above the high end could see GBPUSD trading towards 1.2965. Further close above 1.3048 could mean more bullishness towards 1.3300. That said, the weekly resistance levels underlined on the chart (zoomed in) should be considered.

Alongside this, any failure in closing above the high end of the zone could reverse the pair’s direction sending it towards the low end of the zone. Although, the daily support levels marked on the chart should be monitored closely.

See the chart, to know more about lower trading zone/s with the key trading levels GBPUSD would encounter in a further bearish move.

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GBP/JPY DAILY PRICE CHART (Jan 4, 2017 – Oct 16, 2019) Zoomed out

GBPJPY daily chart 16-10-19 Zoomed out

GBP/JPY DAILY PRICE CHART (June 12 – Oct 16, 2019) Zoomed in

GBPJPY daily chart 16-10-19 Zoomed in

Looking at the daily chart, we notice on Thursday GBP/JPY buyers pushed the pair above 50- Day average and 133.40. Similarly, to GBP/USD the pair resumed bullish price action this week and moved to a higher trading zone 136.40 – 139.00.

Yesterday, the price tested the high end of the zone however, closed below this level. Hence, if buyers continue pushing GBPJPY higher, then a close above 139.00 could send the price towards 140.50. Further close above this level may see the pair trading even higher towards 143.06. In this scenario, the weekly resistance levels underscored on the chart (zoomed in) should be kept in focus.

On the other hand, a close below 136.28 could press GBPJPY towards 135.55. Further close below this level may lead the pair back to 133.40. Nevertheless, the daily support levels marked on the chart should be followed along the way.

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.

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