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Technical Analysis – GBP/JPY remains bearish

GBP/JPY 20/07/18 | EconAlerts


GBP/JPY remains bearish as recent bounce runs out of steam in short-term.

GBP/JPY has reversed back down again after finding resistance on the 149.30 high achieved on Monday and completed three straight bearish days. Furthermore, the price tumbled below the 200-simple moving average in the medium-term as well as below the 50.0% Fibonacci retracement level of the up-leg from 143.75 to 149.30, near 146.50.

In the 4-hour chart, the momentum indicators are pointing to a negative bias, with the RSI sloping to the downside near the threshold of 30. The MACD oscillator is moving lower in the negative area below its red-trigger line.

In the event of an upside reversal, the 50.0% Fibonacci (146.50) could act as a barrier before being able to re-challenge the 38.2% Fibonacci, which stands slightly below the 147.25 resistance obstacle. A break above this level would shift the short-term bearish outlook to a more neutral one as it would take the price until the 23.6% Fibonacci of 148.00, which holds near the 40-SMA.

On the flip side, further losses should see the 61.8% Fibonacci of 145.87, which it failed to touch early this morning. A drop below this significant hurdle would endorse the bearish picture and push the pair until the 145.20 support.

Overall, GBP/JPY seems to be in a bearish correction rally and holds well below the short-term moving averages (20 and 40).

GBP/JPY 20/07/18 | EconAlerts

 

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This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


source: XM

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