GBP/JPY Bearish Signal – Sterling Weakens Despite Positive Data - Forex News by FX Leaders

GBP/JPY Bearish Signal – Sterling Weakens Despite Positive Data

Posted Friday, May 3, 2019 by
Arslan Butt • 1 min read

Wicked, the market fell over 15 pip right after we opened a sell signal. Well, Sterling enjoyed weekly gains ahead of the Bank of England rate statement and with traders digesting the results of local elections which suggest that Theresa May’s Conservative Party has avoided a bloodbath.

Just half an hour ago, UK service providers reported a surge in business activity during April. The Services PMI showed a rise from 48.9 to 50.4 which was supposed to extend support to the GBP but looks like it’s doing nothing.

GBP/JPY is taking a sharp bearish turn upon the violation of the session’s low support level of 145. 100 and it’s likely to extend its bearish rally until 61.8% Fibo level of 144.740.

The 50 periods EMA may extend support around 144.80 to the British Pound against Japanese Yen. While resistance stays around 145.150.

Considering this price action, we just opened a sell trade below 145 for a quick 30 pips target of 144.700.

All the best!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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