Morning Market Update – GBP/JPY

GBP/JPY finally staged a breakout from the descending channel that we’ve been seeing since the beginning of this month on the four-hour chart. Anyhow, if we take the most recent price action into account, we can see that the pair has formed a two bar reversal.

The pair breached the 146.418 levels and settled below the resistance to confirm the breaching of the support area which has not only been an area of interest since early July, but is also at a falling channel resistance on the 4-hour time frame.

After testing 146.418 barriers, the trading settles now at the bearish channel. The price needs to break this level to confirm the continuation of the bearish trend in the upcoming period with its next target at 144.333.

The EMA50 keeps pushing negatively on the price, which encourages us to prefer the bearish trend in the upcoming period. Holding below current levels proves to be a strong resistance area.

The stochastic reaches the oversold levels and we are waiting for a bullish wave again to support some recovery to the upside trend. The expected trading range for today is between 146.418 resistance and 144.333 support area. The expected trend for today is bearish as long as 146.418 remain intact.
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