What’s up, traders.

Hard luck with the GBP/JPY trading signal as it reversed in the opposite direction right after showing a bearish crossover on the 50 periods EMA. The crossover turned out to be a fakeout and played against us.

Besdes that, the safe haven currency Japanese yen also remains weaker on positive trade talk sentiments. Chinese Vice President Liu talked on the phone with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Tuesday. After the phone call, the Chinese top negotiator raised hopes on a trade deal between US & China.

In his post-call statement, he said that both parties had reached a consensus on how to resolve related issues. He also added that both sides have agreed to maintain communications on the remaining items in the first phase-one trade deal negotiations.

After the highlights of China’s willingness to agree on providing intellectual property rights protection, the news about consensus between US & China increased trade optimism in the market and helped GBP/JPY move in an upward direction.

Daily Support and Resistance
S3 56.61
S2 57.4
S1 57.85
Pivot Point 58.2
R1 58.65
R2 58.99
R3 59.78

At the moment, GBP/JPY is likely to find next resistance around 140.800. A bullish breakout of 140.800 can lead prices towards 141.350 resistance now. However, the failure to violate 140.800 can drive a bearish trend in GBP/JPY today. On the lower side, we should target 140.200 mark.

Good luck!