GBP/JPY Technical Analysis: Bulls trying to defend descending channel support ahead of BoE

Haresh Menghani FXStreet

• Over the past two weeks or so, the cross has been correcting from near two-month tops along a descending trend-channel formation on short-term charts.

• Oscillators on hourly charts maintained their bearish bias and have just started gaining negative momentum on the daily chart, suggesting additional weakness.

• Meanwhile, the fact that the cross remains well below important intraday moving averages - 50, 100 & 200-hour SMA, further reinforce the near-term bearish outlook.

• However, given the recent upsurge, the channel might constitute toward the formation of a bullish continuation – flag chart pattern and thus, warrant some caution.

• Hence, it would be prudent to wait for a convincing breakthrough the channel support, which will confirm a bearish breakdown and open room for further downside.

GBP/JPY 1-hourly chart

GBP/JPY

Overview:
    Today Last Price: 141.69
    Today Daily change %: -0.38%
    Today Daily Open: 142.23
Trends:
    Daily SMA20: 141.93
    Daily SMA50: 141.56
    Daily SMA100: 144.17
    Daily SMA200: 144.97
Levels:
    Previous Daily High: 142.53
    Previous Daily Low: 141.75
    Previous Weekly High: 144.73
    Previous Weekly Low: 142.08
    Previous Monthly High: 144.85
    Previous Monthly Low: 131.79
    Daily Fibonacci 38.2%: 142.05
    Daily Fibonacci 61.8%: 142.23
    Daily Pivot Point S1: 141.81
    Daily Pivot Point S2: 141.39
    Daily Pivot Point S3: 141.03
    Daily Pivot Point R1: 142.59
    Daily Pivot Point R2: 142.95
    Daily Pivot Point R3: 143.37

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD bounces back above 1.3200 after strong UK Retail Sales data

GBP/USD extends the rebound above the 1.3200 mark in early Europe on Friday. Stronger-than-expected UK Retail Sales data provide a much-needed lift to the British Pound and the pair amid a chaotic UK political environment.

EUR/USD recovers above 1.1450 on USD pullback

EUR/USD recovers losses and rises back above 1.1450 in the European session on Friday. The pair finds traction as the US Dollar (USD) pulls back sharply on profit-taking amid thin trading conditions, following the hawkish Fed-led rally.

Gold rebounds from one-week low; upside seems limited amid hawkish Fed, bullish USD

Gold recovers slightly from over a one-week low, touched earlier this Friday, though the upside potential seems limited in the face of a bearish fundamental backdrop. Against the backdrop of the US Federal Reserve's hawkish tilt, the uncertainty surrounding the next round of US-Iran negotiations continues to push the US Dollar higher for the third straight day.

Solana extends correction despite ETF inflows, RWA adoption

Solana (SOL) price edges below $70 extending its losses for the fourth straight day this week. The institutional demand for Solana is building, with steady inflows so far this week and Morgan Stanley’s amended S-1 filing for a Solana-focused Exchange-Traded Fund.

Solana extends correction despite ETF inflows, RWA adoption

Solana (SOL) price edges below $70 on Friday, extending its losses for the fourth straight day this week. The institutional demand for Solana is building, with steady inflows so far this week and Morgan Stanley’s amended S-1 filing for a Solana-focused Exchange-Traded Fund.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.