Our first upside target which we predicted in yesterday’s analysis has been hit. GBP/JPY is expected to trade with a bullish outlook. The pair is clearly in an up-trend, backed by its rising trend line. A strong support base has formed around 136.00, which should limit any downside room. Besides, the relative strength index is bullish, and calls for a new rise.
To conclude, as long as 155.70 holds on the downside, look for a new bounce to 157.00 and 157.70 in extension.
Alternatively, if the price moves in the direction opposite to the forecast, a Short position is recommended to be below 155.70 with the target at 155.20.
Strategy: BUY, Stop loss at 155.70, Take profit at 157.00
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: 157.00, 157.70, and 158.15
Support levels: 155.20, 154.60, and 154.00.
The material has been provided by InstaForex Company – www.instaforex.com