GBPJPY – bears look for further extension while daily cloud caps

Slobodan Drvenica Windsor Brokers

The cross holds in red on Tuesday and attempts towards Friday’s spike low and strong downside rejection at 148.91, after Monday’s long-legged Doji candle signaled a breather in steep fall from 156.60 (02 Feb peak).
Sterling remains mixed after better than expected UK CPI numbers today, failing to react stronger on upbeat data, while yen strengthens across the board, maintaining GBPJPY’s negative tone.
Broken daily cloud base (150.32) marks solid resistance and caps recovery attempts on Mon/Tue, keeping bearish bias for renewed probe through 149.25 (cracked Fibo 76.4% of 146.97/156.60) and 148.91 low for extension towards 200SMA (147.52) and 146.97 (28 Nov low).

Res: 149.75; 150.32; 150.82; 151.85
Sup: 149.24; 148.91; 147.52; 146.97

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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