FxWirePro: GBP/JPY Trade Idea

Harmonic pattern- Bullish Gartley Pattern

Potential Reversal Zone (PRZ)- 136

As per our analysis GBP/JPY has shown a huge recovery of more than 150 pips after taking support near 140level. Intraday trend is slightly bullish and a jump till 143 is possible. The main reason for jump is due to short covering. The pair was trading weak for past 7 trading session and lost more than 700 pips on account of weak Pound sterling. GBP has shown a good jump of more than 70 pips from the low of 1.27229. GBPJPY hits high of 141.97 and is currently trading around 141.50.

On the higher side, near term resistance is around 142.47 (23.6% fib) and any break above will take the pair to next level till 143/143.60 (7- day MA)/144.43 (10- day MA).

The near term support is around 140 and any break below targets 138/136.

It is good to buy on dips around 141.50-55 with SL around 141 for the TP of 143/143.60.

Resistance

R1- 142.50
 

R2 - 143

R3- 143.60

Support               

S1- 140

S2- 138

S3- 136