GBPJPY Stays Afloat 136.00 Level Yet Vulnerable With a Positive Outlook

GBPJPY Price Analysis – October 4

GBPJPY ended the week 1.22 percent higher at the level of 136.16 after gaining 15 pips (0.14 percent) on high volume in the prior session. While vulnerable, the cross has recovered quickly from multi-day lows and stays afloat at 136.00 level with a positive outlook. After some progress has been made, the Brexit talks may broaden, but disagreements remain.

Key Levels
Resistance Levels: 147.95, 142.71, 136.62
Support Levels: 133.12, 131.75, 129.29
GBPJPY Long term Trend: Ranging
The GBPJPY cross managed to find decent support near the key 135.00 psychological marks and rallied over 120 pips from four-day lows set earlier this Friday. The mentioned level represents the moving average 13 support zone and should now act as a key pivotal point for short-term traders.

In the meantime, the daily chart’s technical indicators retained their range bias and again went right back to the positive territory towards the RSI midlines, improving access to the predicted positive outlook. Therefore, a fall back towards weekly highs, around the region of 137.01, now looks like a different potential.
GBPJPY Short term Trend: Ranging
GBPJPY rebounded to 137.01 level last week but was unable to strengthen increase after this. Initial bias is neutral this week initially. The drop from 142.71 level and targeting 61.8 percent retracement from 123.99 to 142.71 at 131.75 levels may continue the breach of 133.04 level on the downside.

Even so, breaking the 137.01 marks may increase the rebound to the resistance level of 142.71. As long as the level of resistance is 147.95, a potential downside breakout stays in order. That being said, as seen in the larger time frame, the firm breach of 147.95 level may increase the risk of a long-term bullish reversal.

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