Friday, May 24, 2019
Home > Posts > Technical Analysis – GBP/JPY on a sideways move

Technical Analysis – GBP/JPY on a sideways move

GBP/JPY 19/04/19 | EconAlerts

GBP/JPY on a sideways move; 23.6% Fibonacci appears to be strong support.

GBP/JPY has been on a sideways move for the most part of the week as the 23.6% Fibonacci retracement level of the up leg from 132.48 to 148.85, around 145.00 and the 200-day simple moving average seem to be critical obstacles for the bears. From the technical point of view, the price could lose some momentum in the short-term as the RSI is flattening below the 50 level and the stochastic oscillator is approaching oversold territory.

Another rebound on the 23.6% Fibonacci could send prices again towards the immediate resistance of 147.00, surpassing the 20- and 40-day SMA. Should the price overcome that handle, resistance could run up to the 148.40 level and also the four-month high of 148.85 which may also prove a challenge for traders.

Alternatively, if 145.00 proves easy to get through, the spotlight will turn to the 200-day SMA currently at 144.60 and then at the 143.70 – 144.10 area; a former support zone in March. Below that, the bears would need to clear this area to push back the price towards the 38.2% Fibonacci of 142.60.

In the medium-term picture, GBP/JPY should resume its upside trend above the four-month high of 148.85, however, a dive below the 38.2% Fibonacci would bring the bearish outlook into play.


TRADE THE MARKETS     TRY A DEMO ACCOUNT     US TRADERS

All trading involves risk. It is possible to lose all your capital.


Disclaimer:
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

Leave a Reply

Your email address will not be published. Required fields are marked *