Sideways Trading in GBP/JPY – is it Gonna Cover the Gap? - Forex News by FX Leaders

Sideways Trading in GBP/JPY – is it Gonna Cover the Gap?

Posted Monday, May 6, 2019 by
Arslan Butt • 1 min read

Today, the market is trading the Risk-off sentiment over the uncertainty triggered by the US President Donald Trump. The US President Trump threatened to hike tariffs on $200 billion worth of Chinese imports as the trade talks are taking more time than expected. As a result, the market has experienced a gap in safe-haven assets such as gold and Japanese Yen.

  • Similarly, the GBP/JPY  has also gapped downward. The British Pound is muted in the wake of May Day Holiday, but the Japanese Yen remains active due to safe-haven appeal.
  • The RSI and Stochastics are below 50, suggesting a bearish bias of the market.
  • The GBP/JPY pair is likely to gain support around 144.800, extended by the 50 EMA.
  • The immediate resistance prevails around 145.500 and 146.460 today.

Support Resistance
145.28 146.99
144.19 147.6
142.49 149.31
Key Trading Level: 145.9

GBP/JPY – Trading Signal
For now, we have shorted the GBP/JPY below 145.500 with a stop loss above 145.69 and take profit around 144.99.

Good luck!

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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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