GBPJPY Price Stays Fragile, Despite Trading in a Consolidation Channel

GBPJPY Price Stays Fragile, Despite Trading in a Consolidation Channel

GBPJPY Price Analysis – October 25

The Pound sterling vs safe-haven Yen stays fragile under selling pressure at the end of the week, despite trading in a consolidation channel between 137.84 and 135.38 levels. Persistent Brexit-related uncertainties continued undermining the sentiment around the GBP.

Key Levels
Resistance levels: 147.95, 142.71, 137.84
Support levels: 135.38, 133.04, 131.75
GBPJPY Long term Trend: Ranging
During the prior week, GBPJPY tries to push through the moderate resistance at 137.84 and draws out some supply with a response that is currently underneath the level of 136.62. In the larger sense, meanwhile, the increase from the level of 123.99 is seen only as an increasing phase of the sideway consolidation trend from the level of 122.75 (low).

As long as the level of resistance is 147.95, an inevitable downside breakout stays in support. Nevertheless, the steady breach of the 147.95 marks would increase the probability of a bullish long-term reversal. Emphasis on validation may then be shifted to a 156.59 resistance level.
GBPJPY Short term Trend: Ranging
GBPJPY seems to be drifting into a sideways market in the short-term picture, as no dimensional signals are gaining traction. The next path is anticipated to be formed by a simple breach beneath level 133.04 or over level 137.84. Second, this week’s initial bias holds firm.

On the upside, the rebound from the 133.04 level may get prolonged by a breach of the 137.84 level as the intraday bias will be turned back to the upside to retest the high level of 142.71. On the downside, the 135.00 level breach may suggest that the fall is restarting from the 142.71 level.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.