GBP Technical Analysis

The 1.55 area was supportive in the past, but during last week the pair broke it down. I can assume that the trend of this marked changed completely. I don't expect it to go up in the near future and believe that for a long-term trading I'd better choose selling here...

The pair moved just a little bit due to the holidays in the US and UK, but I think my expectations will be approved this week.

This pair shows that it is overbought. It gives a chance to enter purchases on a possible rolldown (1.5325, 1.5280)

Today I'm gonna play long at this market, because it seems to go up to 1.5450 ( the resistance level)

There is some narrowing of envelopes, pressure of ADX - all these can allow bears to work 1.5744. But I would recommend you to abstain from sales.

Talking Points:

• GBP/JPY Technical Strategy: Flat
• Support: 192.99, 191.45, 188.96
• Resistance: 195.48, 197.50, 199.51

The British Pound paused to digest gains after failing to overcome a chart barrier above the 195.00 figure against the Japanese Yen. Near-term resistance is at 195.48, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 197.50. Alternatively, a turn below the 23.6% Fib at 192.99 opens the door for a challenge of the 14.6% expansion at 191.45.

Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.

More...

There is a strong local resistance in the middle Bollinger band (1.5817), from where a decline to 1.5703 can take place.

Talking Points:

• GBP/JPY Technical Strategy: Short at 192.83
• Support: 190.91, 187.85, 185.37
• Resistance: 192.80, 194.93, 195.87

The British Pound is making cautious downward progress against the Japanese Yen after breaking two-month rising trend support. A daily close below the 23.6% Fibonacci retracementat 190.91 exposes the 38.2% level at 187.85. Alternatively, a reversal above the 14.6% Fib at 192.80 clears the way for a test of the 194.33-93 area (range floor support-turned-resistance, trend line).

We entered short GBPJPY at 192.83, initially aiming for 190.91. A stop-loss will be triggered on a daily close above 194.33. We will book half of the position and adjust the stop-loss to breakeven (192.83) prices reach the first target.

More...

Talking Points:

• GBP/JPY Technical Strategy: Short at 192.83
• Support: 187.85, 185.37, 182.89
• Resistance: 190.91, 192.80, 194.33

The British Pound gapped to the lowest level in a month against the Japanese Yen, with sellers now eyeing support below the 188.00 figure. Near-term support is at 187.85, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the 50% level at 185.37. Alternatively, a turn back above the 23.6% Fib at 190.91 opens the door for a challenge of the 14.6% retracement at 192.80.

We sold GBPJPY at 192.83. Prices have now met their initial target and we have taken profit on half of the position. The remainder of the position will remain in play to capture any further on-coming weakness with a stop-loss adjusted to the breakeven level.





More...

Talking Points:

• GBP/JPY Technical Strategy: Flat
• Support: 190.20, 188.92, 187.63
• Resistance: 191.79, 194.33, 195.87

The British Pound is aiming below the 191.00 figure against the Japanese Yen after narrowly edging below chart support. Near-term support is at 190.20, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 188.92. Alternatively, a turn back above 23.6% Fib at 191.79 opens the door for a challenge of the July 17 high at 194.33.

The available trading range is too narrow to justify entering a trade in line with our long-term Euro outlook from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.


--- Written by Ilya Spivak, Currency Strategist for DailyFX.com


more...