Candlestick Pattern- Bearish Engulfing
GBPJPY trades lower after a minor jump till 144.71 from low of 140.81. The dip was mainly due to sharp sell-off in Pound sterling against USD. It has lost more than 150 pips on weak economic data and Brexit uncertainty. The BOE Governor hints that there will be a rate cut at a policy meeting next week.
Technically, the pair is facing near term support at 142.74 (21- day MA) and any violation below will drag the pair down till 142/141.20. Major bearish continuation only below 140.80.
On the higher side, immediate resistance stands at 143.45 and any indicative break above targets 144/144.70.
It is good to sell on rallies around 143.20-25 with SL around 144 for the TP of 141.20/140.80.
