FxWirePro- GBPJPY Trade idea

The GBP/JPY currency pair recovered more than 100 pips after forming a double bottom around 194.30. It hits a high of 196.15 and is currently trading around 195.21. The Potential Reversal Zone (PRZ) is set at 200.20.

The upcoming UK Consumer Price Index (CPI) data is set to be released on November 20, 2024, and it's generating a lot of interest. The headline inflation rate is expected to rise to 2.6% for October, up from 1.7% in September. This increase is mainly due to the removal of the energy price cap and seasonal changes in prices. Meanwhile, core inflation, which excludes food and energy prices, is predicted to stay steady at about 3.3%, indicating that underlying inflation pressures are being managed.

Technical Overview:

The GBP/JPY is trading below both short-term and long-term moving averages, which suggests a major downtrend. The immediate resistance level is at 196.10. If the price breaks this level, it could rise toward 196.40/197/197.57/198.10. Support is at 195 and if that fails, the price could drop to 194.30/193.60/192.95/191.80.

Indicator Analysis:

The CCI and ADX indicators suggest a bearish trend.

Trading Recommendation:

Consider selling on rallies around 195.10-20 with SL around 196.10 and aim for a target price of 193.