This week we recommend two strategies: buy GBP/JPY and sell short-sterling H3 futures.

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Note that technical recommendations may conflict with our fundamental views.

GBP/JPY – above 129.65 will extend gains to 133.45 and 134.45/135.10

Strategy summary – buy on dips for initial extensions higher to 131.80 and 133.45. Suggest placing a stop under 124.75.

Short sterling H3 futures – risk seen to 99.33 as divergence concerns

Strategy summary – sell near-term strength for a correction targeting 99.33, possibly 99.26. Place a protective stop over 99.55..