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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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source: XM

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