GBP/JPY rally stopped by 188.00 psychological level [Video]
|The GBP/JPY pair extended its upwards movement, registering a new high of 188.12. Still, the price failed to stabilize above the 188.00 psychological level and now is located at 187.77. After such an impressive rally, temporary drops are natural. The bias remains strongly bullish as the UK CPI reported a 4.0% growth, beating the 3.8% growth expected, while the Core CPI rose by 5.1% versus the 4.9% growth forecasted.
From the technical point of view, the GBP/JPY pair found resistance at the weekly R2 of 187.98 and right above the median line (ml) of the ascending pitchfork. Now, it has retreated a little, developing a flag formation. Though, false breakouts through the immediate resistance levels may announce a strong drop, which could be natural in the short term.
Join Learn 2 Trade VIP Group now!
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.