GBP/JPY Bearish Resversal Setup – Get Ready to Trade
Arslan Butt • 1 min read
What’s up, folks.
The market is a bit muted ahead of the most awaited G20 summit which is scheduled for June 28 and 29. Despite this, GBP/JPY exchange rate maintains slightly bullish momentum after bouncing off above 135.800 support zone. Looks like the US-China trade optimism has faded the safe haven appeal, making Japanese yen weaker among peers.
In the meantime, an upswing in Sterling seems to be running out the trend as its rise is undermined by rising Brexit uncertainty. The GBP/JPY pair is most certainly in a bearish swing despite staying in the oversold zone on bigger timeframes.
Looking at the technical side, GBP/JPY is facing solid resistance around 137.150 area. The area is being marked as a triple top, suggesting a potential bearish reversal in the market. On the 4-hourly charts, GBP/JPY is stuck in the overbought zone, signaling that bears are looming below 137.150 area.
Key Trading Level: 136.23
On the lower side, support stays around 136.650 and 136.400. While GBP/JPY may continue its bullish trend above 137.150 to target 137.800 on the bullish breakout.