The GBP/JPY pair is under pressure. The pair stays below its key resistance at 182.45 and is capped by its descending 20-period moving average. Meanwhile, the relative strength index lacks upward momentum. The first target to the downside is set at the horizontal support and overlap at 181.05. A breakout below this level would open the way to further weakness toward 180.20.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 181.05. A break of that target will move the pair further downwards to 180.20. The pivot point stands at 182.45. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 183.15 and the second target at 183.75.
Resistance levels: 183.15 183.75 184.10
Support levels: 181.05 180.20 179.10
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