GBP/JPY Price Analysis: Approaching Fibonacci level at 132.05 area

GBP/JPY retreats from 133.30 to test the Fibonacci retracement level at 130.05.
The overall risk aversion, combined with Brexit fears have punished the pound.

Guillermo Alcala FXStreet

The pound has dropped about 0.65% on Friday, after rejection at the 50-day SMA and downward trending resistance from late-May highs, at 133.30. The pair has turned lower on Friday, to reach levels right above 130.05 where the 38.2% Fibonacci retracement level of the February-March sell-off and May 28, 29, and June 22 lows might offer support.

The overall risk-averse sentiment amid the global increase of COVID-19 cases combined with Brexit fears after the EU negotiator Michel Barnier highlighted the dim outlook for a trade deal has crushed the pound, which has lost ground against its main peers.

On the downside, below 131.80, negative pressure on the pair might increase sending it towards May 22 low at 130.70 and May 18 lows at 129.35. On the upside, immediate resistance remains at the trendline resistance, now around 133.30. Above here, the pair might gain bullish traction, aiming towards 134.55 (50% Fibonacci retracement of the February-March decline) and finally, 136,35 (June 16 high).

GBP/JPY daily chart

GBP/JPY key levels to watch

GBP/JPY

Overview
Today last price	132.3
Today Daily Change	-0.83
Today Daily Change %	-0.62
Today daily open	133.13

Trends
Daily SMA20	135.02
Daily SMA50	133.38
Daily SMA100	134.89
Daily SMA200	137.6

Levels
Previous Daily High	133.62
Previous Daily Low	132.76
Previous Weekly High	136.36
Previous Weekly Low	131.92
Previous Monthly High	135.08
Previous Monthly Low	129.32
Daily Fibonacci 38.2%	133.29
Daily Fibonacci 61.8%	133.09
Daily Pivot Point S1	132.72
Daily Pivot Point S2	132.31
Daily Pivot Point S3	131.87
Daily Pivot Point R1	133.57
Daily Pivot Point R2	134.02
Daily Pivot Point R3	134.43

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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