GBP/JPY Price Analysis: Below 133.00 capped by trendline resistance

  • GBP/JPY remains capped below downward trending resistance at 133.45.
  • Pound suffers as the coronavirus and a new tariffs rift threaten the economic recovery.


The pound has extended its reversal from Tuesday’s highs right above 134.00 with a nearly 0.4% decline, to session lows at 132.65. The daily charts show the pair on a clear downtrend channel, with upside attempts capped below trendline resistance from early June’s peak, now at 133.45 area.

Investor’s fears that a second wave of COVID-19 infections might derail economic recovery and news reports suggesting that the US would be weighing on imposing new tariffs on European imports have hammered risk sentiment on Wednesday, increasing demand for safe-havens like the Japanese yen.

On the downside, the sterling is being contained above June 23 low at 132.65 so far. Below here, bears might tighten their grip on the pair, and send it towards June 22 low at 131.75 before May 22 low at 130.70.

\On the upside, there is an important resistance level at 133.45/50 area, were the 50-day SMA meets the mentioned trendline resistance from early June highs. A breakthrough beyond that level might send the pair towards 134.60 (50% Fibonacci retracement of the February-March decline) and the 100-day SMA, at 135.00.  


GBP/JPY daily chart

GBPJPY daily chart

GBP/JPY key levels to watch


Today last price 132.87
Today Daily Change -0.49
Today Daily Change % -0.37
Today daily open 133.36
Daily SMA20 134.95
Daily SMA50 133.44
Daily SMA100 135.07
Daily SMA200 137.62
Previous Daily High 133.99
Previous Daily Low 132.6
Previous Weekly High 136.36
Previous Weekly Low 131.92
Previous Monthly High 135.08
Previous Monthly Low 129.32
Daily Fibonacci 38.2% 133.46
Daily Fibonacci 61.8% 133.14
Daily Pivot Point S1 132.65
Daily Pivot Point S2 131.93
Daily Pivot Point S3 131.26
Daily Pivot Point R1 134.04
Daily Pivot Point R2 134.71
Daily Pivot Point R3 135.43




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