Sideways Trading In GBP/JPY – Technical Outlook!
Arslan Butt • 1 min read
What’s up, traders.
The cross currency GBP/JPY is trading sideways at 145.200 on the back of strengthening Japanese Yen. The bid tone around the safe haven currency Yen strengthened due to a steep drop in the stock market indices. For now, investors focus on the MPC Member Vlieghe who is due to deliver a speech titled “Global and domestic challenges for UK monetary policy” at the Belgian Financial Forum in Brussels at 2:45 (GMT).
Now let’s speak about the technical outlook. The bearish momentum in GBP/JPY seems to get weaker as the pair is reaching near a solid support level of 147.850. Basically, it’s a triple bottom support level and these kinds of patterns are known for a bullish reversal.
Can we expect a bullish reversal now? Well, the technical indicators are signaling bullish bias. Especially, the RSI is below 20 which means sooner or later the sellers may get exhausted.
Key Trading Level: 148.33
GBP/JPY – Trading Plan
I’m looking to enjoy the choppy trading by selling below 148.350 and buying above 147.450 with a minimum stop loss of 30 pips. Whereas, the take profit should be 50 pips. Stay in touch for updates on forex trading signals…