GBP/JPY trades flat despite strong Pound sterling. It hits an high of 189.13 yesterday and is currently trading around 188.49. Intraday trend is bullish as long as support 186.50 holds.
US-British trade negotiations are going steadily with both parties demanding a trade agreement that lowers tariffs and deepens collaboration, especially in frontier sectors such as biotech, AI, and pharma. Although the UK wishes to scrap the current 10% baseline tariff on US-bound exports, the most contentious issues relate to US calls for access to chlorinated chicken and hormone-treated beef, to which the UK is opposed because of rigorous food safety and animal welfare controls. The emphasis is on new sectors and services, such as technology areas like AI and quantum computing, to tap into research hubs and capital markets in the quest for innovation, in the context of global market uncertainty driven by US tariffs. The UK sticks to retaining its food safety rules and net safety legislation, as with 2024 UK election commitments and public opposition to relaxing standards.
The GBP/JPY pair is trading below 34 and 55 EMA (Short-term) and below 200 EMA (long term on the 15-min chart, confirms a bullish trend. Immediate resistance is at 190,a breach above this level targets of 191/191.75/192.30/193. Downside support is at 188 with additional levels a 188.45/188/187.46/187.10/186.45.
Market Indicators
CCI (50)- Bullish
Directional movement index - Neutral
Trading Strategy: Buy on dips
It Is good to buy above 189.15 with SL around 188 for a TP of 192.
