GBP/JPY Moves into the Consolidation Phase – Quick Update on Trading Signal

The  GBP/JPY trades neutral and has entered into the narrow consolidative range. A couple of hours ago, we shared a forex trading signal...


The GBP/JPY trades neutral and has entered into the narrow consolidative range. A couple of hours ago, we shared a forex trading signal on GBP/JPY to stay bullish above $145 to target 145.350. Is it worth keeping it now? Yes it is and here’s the reason…

The GBP/JPY is offering a pretty cool trade setup on the 2-hour chart. For instance, the cross pair has entered the oversold zone, signifying chances of correction. A number of doji and spinning top candles right above a strong support level of 144.450 are suggesting a neutral sentiment of bears. Particularly when these candles are followed by a strong bearish trend, these represent the bullish bias of investors.

GBP/JPY - 2 Hour Chart

GBP/JPY – 2 Hour Chart

However, the weak Sterling is a reason why the movement is bit slow. The Sterling is trading close to seven-month lows as Prime Minister Theresa May’s government faced another crunch vote on Brexit. The vote befalls at a time of rising traders’ nervousness that Brexit discussions could fail to reach an accord. Anyway, I’m still expecting a 50% Fibonacci retracement in GBP/JPY until 145.440.

GBP/JPY – Key Trading Levels

Support Resistance
144.52 145.88
144.09 146.31
143.41 146.99
Key Trading Level: 145.2

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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