Market participants are expecting the UK prime minister, Theresa May, to trigger article 50 this month and this is adding strength to the state of consolidation. Market sentiment remains bearish as price has been coming down from its 2015 high of 195.00.
Since then the market has been in a downtrend with a low of 122.40. Currently, the pair is trading at 139.80 in a predominantly bearish environment.
First support zone is seen at latest low around 138.00, first resistance is seen at 140.65. Bears need to close below 138.00 for the bearish trend to gain new momentum, while bulls need a close above 145.
Chart: GBP/JPY H4
It's consolidating sideways indeed.
ReplyDeleteGreat assessment as always.
ReplyDeleteExcellent assessment, thanks for sharing!
ReplyDeleteConsolidating in a wider range.
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ReplyDeleteExcellent information to keep in mind.
ReplyDeleteGood point! I´ll be watching to those levels.
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