Our downside targets which we predicted in the previous analysis have been it as we predicted. GBP/JPY is under pressure. The pair posted a pullback and broke below its 20-period and 50-period moving averages. The relative strength index bearish, calling for a further drop. The selling pressure should be maintained above the key resistance at 147.65.
Hence, as long as this key level is not surpassed, look for a further drop with targets at 145.95 and 145.40 in extension.
Alternatively, if the price moves in the direction opposite to the forecast, a long position is recommended to be above 146.50 with the target at 147.45.
Strategy: SELL, Stop loss at 147.65, Take profit at 145.95
Chart Explanation: The black line shows the pivot point. The price above the pivot point indicates long positions; and when it is below the pivot point, it indicates short positions. The red lines show the support levels, and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 148.00, 148.55, and 149
Support levels: 145.95, 145.40, and 144.60
The material has been provided by InstaForex Company - www.instaforex.com