The cross made a double top at 191.94 on the weekly charts. The cross has been moving towards higher lows for eight consecutive weeks. Even though the cross fell this week, the higher low formation remains in play. After the BoJ governor's speech, the cross drifted to 188.97. Bulls were twice supported with the 20Dsma this week. This shows the strength pound bulls. We recommend bullish stance above 191.95 with a small target at 192.30. The strong bullish momentum is available at 192.40 with targets at 193.60 and 194.40. To grab this target, bulls must close above 192.00 at today's session. If bulls are unable to breach the double top on a closing basis, bears will aim at 191.00, 190.70, 190.00, and 189.00. The real problem for bulls is likely to arise below 189.00 towards 188.50, and 187.50. The coming week will start from Tuesday's CPI and end with retail sales on Thursday and Friday's sector net borrowing. Besides, BOJ monetary policy is due on Thursday and Friday's BOJ press conference.
To contact the author of this analysis, please email- joseph.wind@analytics.instaforex.com
The material has been provided by InstaForex Company - www.instaforex.com