GBP/JPY technical analysis: Rebounds to 23.6% Fibo./descending channel confluence hurdle
- The GBP/JPY cross stalled its recent bearish trajectory and staged a modest rebound from multi-month lows, snapping three consecutive days of losing streak.
- The recovery helped the cross to defend a support marked by the lower end of a short-term descending trend-channel held over the past three trading sessions.
The top end of the mentioned trend-channel coincides with 23.6% Fibonacci retracement level of the 138.33-136.48 recent slide, which should now act as a key pivotal point for short-term traders and supporting prospects for any further recovery.
Meanwhile, technical indicators on the 1-hourly chart have managed to recover from the negative territory but maintained their bearish bias on 4-hourly/daily charts, warranting some caution before placing any aggressive bullish bets.
Hence, it would be prudent to wait for a sustained move beyond the mentioned confluence hurdle, above which the cross seems all set to accelerate the up-move further towards another confluence resistance near the 137.40-45 region.
The said hurdle comprises of 100-hour SMA and 50% Fibonacci retracement level and might keep a lid on any subsequent up-move ahead of Tuesday’s second vote for the Tory leadership and growing fears of a no-deal Brexit.
GBP/JPY 1-hourly chart
-636963649764130710.png&w=1536&q=95)
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
