GBPJPY showed a follow-through selling after a massive sell-off on Friday. The weak Pound sterling against USD on policy divergence between US Fed and BOE. The dismal UK GPD also putting pressure on the Pound sterli ng at higher levels. Technically in the 4-hour chart, the pair is holding below short term (21- and 55 EMA) and 200 MA (165.19). Any close below 164 will drag the pair down to 162.68/160. GBPJPY hits an intraday low of 164.16 and is currently trading around 164.35.
The near-term resistance is around 165.40 any breach above targets 166/167/168/168.75/ 170/172.
Indicators (Hourly chart)
CCI (50)- Bearish
ADX- Neutral
It is good to sell on rallies around 165.38-40 with SL around 166 for TP of 162.75.
