GBP/JPY Steady Below Upper Range – Technical Outlook
Arslan Butt • 1 min read
On the technical front, the technical indicators are lining up for a bearish retracement. Watch out.
GBP/JPY is trading above 100 periods MAs suggesting a bullish momentum in the short-term.
GBP/JPY is facing strong support around 147.200 along with resistance at 149. We can also see a 100 periods moving average crossover at 146 which demonstrates a buying trend.
The leading indicators, such as the Relative Strength Index and Stochastic holding above 80. It suggests that bulls may get exhausted soon, giving power to sellers.
There’s a bearish engulfing pattern on the 4-hour chart which may drive sellers below 149.
But investors are also afraid of taking positions in the GBP/JPY ahead of British vote.
Key Trading Level: 147.48
GBP/JPY – Trade Plan
The idea is to stay bearish below 149 with a stop loss below 149.250 and take profit at 148.450 and 148.