GBPJPY - Selling into rallies with the upside limited

Technical

Monthly: The cross is trading between the 38.2% and 50% pullback level (of 152.09 and 160.45). Price action in February posted a bearish Outside Month, often an indication that the rally is over and the start of a new downward bias.

GBPJPY

Weekly: The weekly chart highlights mixed trading for the last 69 weeks as we hold within a bearish Ascending Wedge formation. A break of trend line support (at 146.35) and the measured move target is located at 136.00. We can note higher highs and lows. Bespoke resistance is seen at 154.88.

GBPJPY

Daily: We have a Fibonacci confluence zone at 154.10. This is a 78.6% pullback of the 156.55-145.00 selloff and a 161.8% extension from the 145.00-150.53 rally. With UK earnings data release out later today, we could see a spike through this important zone to trigger our short.

GBPJPY

Action:

We look to Sell at 154.80

Stop: 156.20

Targets:  151.70 and 146.50

 


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