GBP/JPY was in a corrective phase but now it seems that the downwards movement is over. That’s why we could look for new buying opportunities. Still, we need confirmation before considering going long. Technically, the pair is still under pressure, so it could come back down to test and retest the immediate support levels.
The pair continues to stay lower as the UK data came in mixed yesterday. The Prelim GDP, Goods Trade Balance, Industrial Production, Manufacturing Production, Prelim Business Investment, and the Index of Services reported worse than expected figures.
GBP/JPY Technical Analysis!
GBP/JPY has escaped from the descending pitchfork’s body after finding support below the 61.8% retracement level. In the short term, it could come back to test and retest the 61.8% and the channel’s downside line before jumping higher.
Jumping and stabilizing above the 152.85, a new higher high could activate potential growth. The current down channel could represent a reversal pattern. Technically, only a new lower low, a bearish closure below 152.37 and under the downside line could activate a deeper drop and could invalidate the upside scenario.
Conclusion!
Staying above the 61.8% retracement level and registering a new higher high could signal potential further growth.
Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
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