Technical analysis of GBP/JPY for October 10, 2017

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GBP/JPY is expected to trade with a bullish bias above 147.80. The pair is holding firmly above its nearest support at 147.80. Both the 20-period and 50-period moving averages are turning up, and should call for further advance. Besides, the relative strength index is mixed to bullish.

In these perspectives, as long as 147.80 holds on the downside, look for a new rise to 148.55 and 149.00 in extension.

Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 147.80 with the target at 147.40.

Strategy: BUY, Stop Loss: 147.80, Take Profit: 148.55

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 points, 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: 148.558, 149.00 and 149.55

Support levels: 147.40, 146.95, and 146.10

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