EUR, GBP, Pip Deviations: Levels, Ranges, Targets

Brian Twomey Brian's Investment

A continuation to pip deviations, here's GBP/JPY most vital break points for today.

In GBP terms, exact break points are 147.24, 147.81, 147.96, 148.45 and 148.84

In USD terms, Exact break points are 147.42, 147.73, 148.04, 148.78, 149.15

In JPY terms, 147.71, 148.14, 148.80, 149.13 and 149.47.

So closely aligned are interest rates from GBP, USD and JPY yet far enough distant. Note 5 break points. The 5 break points are the British Tradition and instituted for the most part by all nations exchange rates pegged or closely associated to GBP dating back 100's of years. Nothing changed over the years.

GBP/JPY viewed in JPY terms was actually JPY/GBP in USD terms. The close association to GBP/JPY in USD, JPY and GBP terms is the leftover result from JPY/GBP's peg to GBP money markets and Gold in the 1930's. Interest rates may have changed over the years but exchange rates remain the same. While nation's play around with interest rates, the unknown answer is at what level is an exchange rate perfectly viable to sustain an economy. We're sloshing 5 trillion around daily and exchange rates remain dead yet growth hasn't been seen in 9 years.

Why GBP/JPY makes it to the USD stage is because the difference between GBP and USD is so slight. Hardly a difference exists. GBP/USD is trying so hard to become USD as its pegged is so closely tied together.

EUR/USD, Overall Break points 1.1797 and 1.1652. Higher or lower today must break 1.1756 to target 1.1713 and 1.1818.

EUR/JPY. Overall break points 131.56 and 131.12. Break points above are located at 132.12 and 132.35. Lower must break 131.89 and 131.66.

GBP/USD. Overall break points, 1.3152 and 1.3112. Break points above today are located at 1.3264 and 1.3276. Lower must break 1.3212 then 1.3199.

GBP/JPY overall break points 147.55 and 146.70. GBP/JPY traded today 148.88 which is 4 pips above its break point at 148.84. Lower must break 148.45 to target 147.96 and 147.52.

Both GBP/JPY and EUR/JPY are trading close to break points, caution as the big move is on the way.

Author

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

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