The GBP/JPY currency pair took support near 55-8H EMA and showed a minor pullback. It hit a high of 197.52 and is currently trading around 196.84. The Potential Reversal Zone (PRZ) is set at 200.20, which means traders might expect a price reversal around that level.
Technical Outlook for GBP/JPY
GBP/JPY is trading above both short-term and long-term moving averages in the 8 hour chart, showing an overall upward trend. The immediate resistance level is at 197.60 and if it breaks above this level, it could rise to around 198/199/199.70 or even 200.20. On the downside, support is found at 196.30, with other important levels at 195.70/195, 194.10, and 193.
Trading Strategy Recommendations
CCI (50)- Bullish
Directional Movement Index - Neutral
Given the current technical and fundamental situation, traders may consider buying on dips around the 196.40 mark, with a stop-loss set at about 195.75 for the TP of 200.20.
