GBP/JPY Technical Analysis: Spikes to 2-month tops post-UK CPI
|• The cross built on last week's bullish break through an important confluence region, comprising of 100-day SMA, a short-term descending trend-line and 38.2% Fibonacci retracement level of the 156.61-139.90 downfall.
• The positive momentum got an additional boost from hotter-than-expected UK CPI consumer inflation figures, lifting the cross further beyond 50% Fibonacci retracement level to a two-month high level of 148.54.
• Technical indicators on the daily chart are still a bit away from near-term overbought conditions and thus, support prospects for an extension of the bullish trajectory amid optimism over the EU-UK Brexit deal.
• Fresh Brexit headlines coming from the informal EU summit in Salzburg on Wednesday and Thursday will now play a key role in determining the next leg of a directional move for the British Pound.
Spot Rate: 148.36
Daily Low: 147.60
Trend: Bullish
Resistance
R1: 148.75 (horizontal zone)
R2: 149.00 (round figure mark)
R3: 149.31 (July month swing high)
Support
S1: 148.00 (round figure mark)
S2: 147.60 (current day swing low)
S3: 147.15 (horizontal zone)
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