GBPJPY Plunges to 14 Days Low Beneath 135.00 Level As Brexit-Related Concerns Add to Selling Bias

GBPJPY Price Analysis – October 28

The GBPJPY cross has come under fresh selling bias during the American session and plunged to 14 days low beneath the 135.00 level. Persistent Brexit-related concerns add to selling bias while keeping the GBP lower forcing investors to take refuge in the safe-haven Japanese yen.

Key Levels
Resistance levels: 144.95, 138.38, 136.62
Support levels: 133.04, 131.75, 129.29
GBPJPY Long term Trend: Ranging
GBPJPY reversed from daily highs around 136.28 and fell below support at 135.00. GBPJPY showed some stability near the very important ascending trendline support and made a brilliant bounce off the 134.88 marks. Despite the decline in GBPJPY, it still managed to maintain a modest gain, around 135.00/135.60 level.

In a broader context, the rise from 123.99 is seen only as an upward phase of the consolidation sideways trend from 122.75 (low). As long as the resistance level of 144.95 remains, a possible downside breakout remains in favor. However, a solid break of the 144.95 level would increase the likelihood of a long-term bullish reversal. Attention will then be drawn to the 147.95 resistance level for a re-attempt.
GBPJPY Short term Trend: Ranging
A break of the GBPJPY support level of 135.38 suggests that the recovery from 133.04 is complete. Perhaps the corrective fall from 142.71 is about to resume. Intraday bias initially turned towards 133.04 low support.

A break would confirm and target a 61.8% recovery from 123.99 to 142.71 at 131.75. On the other hand, the minor resistance levels at 136.62 will retrace the uptrend to the resistance level at 137.84. Meanwhile, the short-term oscillators are currently showing momentum that is far from effective as the 4-hour bearish RSI returns, pointing up.

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