Technical analysis of GBP/JPY for August 07, 2017

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GBP/USD is under pressure. The pair recorded lower tops and lower bottoms, which confirmed a negative outlook. The downward momentum is further reinforced by the declining 50-period moving average. The relative strength index is capped by a descending trend line.

Hence, as long as 144.90 holds on the upside, a new drop to 143.90 and even to 143.35 seems more likely to occur.

Alternatively, if the price moves in the opposite direction as predicted, a long position is recommended above 144.90 with the target at 145.45.

Strategy: SELL, Stop Loss: 144.90, Take Profit: 143.90.

Chart Explanation: the black line shows the pivot point. The price above the pivot point indicates the bullish position and when it is below the pivot points, it indicates a short position. 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: 145.45, 145.95, and 146.60

Support levels: 143.90, 143.35, and 142.75.

The material has been provided by InstaForex Company - www.instaforex.com