GBP/JPY Technical Analysis: Pound Launches Recovery

By DailyFx | July 30, 2014 AAA

DailyFX.com -

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • GBP/JPY Technical Strategy: Flat
  • Support: 173.44, 172.59, 171.75
  • Resistance: 173.96, 174.82, 175.35-50

The British Pound launched a recovery against the Japanese Yen having found support below the 173.00 figure. Near-term resistance is at 173.96, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 38.2% level at 174.82. Alternatively, a reversal back below the 14.6% Fib at 173.44 opens the door for a challenge of the door for a challenge of the July 23 low at 173.59.

Risk/reward considerations argue against entering short with prices trading in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

GBP/JPY Technical Analysis: Pound Launches Recovery

Daily Chart - Created Using FXCM Marketscope 2.0

comments powered by Disqus
Related Forex Analysis
  1. Trading Video: Gauging the Dominant Dollar, Yen and S&P 500 Trends
    Forex News

    Trading Video: Gauging the Dominant Dollar, Yen and S&P 500 Trends

  2. Strategy Video: The Process of Trend Reversals
    Forex News

    Strategy Video: The Process of Trend Reversals

  3. Session Recap: JPY retreats as risk appetite improves
    Forex News

    Session Recap: JPY retreats as risk appetite improves

  4. Russia Announces FX Repo: USD/RUB Finds Support in Bullish Channel
    Forex News

    Russia Announces FX Repo: USD/RUB Finds Support in Bullish Channel

  5. NZDUSD Next Leg Lower Around the Corner?
    Forex News

    NZDUSD Next Leg Lower Around the Corner?

Trading Center