FxWirePro- GBPJPY Trade Idea

The GBP/JPY gained sharply on board-based Pound sterling.  It hit an intraday high of 192.58 and is currently trading around 192.57. Intraday trend is bullish as long as the support of 190.80 holds.

UK Business Secretary Jonathan Reynolds has condemned the U.S. tariffs on steel and aluminum, and the UK is taking a pragmatic negotiating approach to securing a comprehensive economic deal with the U.S. in an attempt to put the tariffs out of commission and promote UK business. Having maintained its solid trade ties with the U.S. intact, Britain is probing other economic arrangements such as the India-UK Free Trade Agreement as it tries to diversify its trade basket. Unlike the EU, which has taken counter-measures, Britain is playing it cool, seeking to pursue further national interests via diplomacy while balancing any economic effects via freer trade flows.

Technical Analysis Points to Further Downside 

The GBP/JPY pair is trading above  34 and 55 EMA (Short-term) and 200 EMA (long-term on the 4-hour chart, confirming a bearish trend. Immediate resistance is at 192.60,a breach above this level targets of 193/195/196. Downside support is at 191.50 with additional levels at 190.80/189.80/188.75/188/187.25/186/185.

Market Indicators

CCI (50)- Bullish

Directional movement index - Bullish

 It is recommended to buy on dips around 192 with a stop-loss at 191.80 for a TP of 195.