FxWirePro: GBP/JPY forms Gravestone doji, good to sell on rallies
Candlestick pattern formed- Gravestone doji. Major Resistance – 153 GBP/JPY declined almost 100 pips yesterday on uncertainty over Brexit negotiations. UK and EUE failed to reach Brexit deal yesterday. Pound sterling rev…
GBP/JPY declined almost 100 pips yesterday on uncertainty over Brexit negotiations. UK and EUE failed to reach Brexit deal yesterday. Pound sterling reversed its gains after no deal was made between UK and EU on Brexit negotiations.
UK PM Theresa May and Juncker were forced to stop meeting after Irish DUP said it would not accept a deal that treat Northern Ireland differently from the rest of UK.
The pair has declined till 151.25 from the high of 152.94. It should break above 153 for further bullishness. Any convincing break above will take the pair to next level till 154/155.
The pair’s intraday weakness can be seen below 150 (7- day MA) and any violation below will drag the pair to next level till 149.50 (10- day MA)/149.25 (61.8% retracement of 146.95 and 152.94). Any break below 149 confirms minor weakness, a dip till 147 cannot be ruled out. The minor support is around 150.50.
GBP/JPY formed temporary top around 152.86 and started to decline from that level. Any short term bullishness above 152.86. Any convincing jump above the level will take the pair to next level till 154/155.
It is good to sell on rallies around 151.95-152 with SL around 153 for the TP of 149/147.
