GBP pairs have taken a real hammering this week, and GBP/JPY is no exception! Price yesterday broke outside daily sloping support which has been intact since the lows from March. It has since bounced from the support zone circling 135.35 and is currently on a pullback leg of its move.
We believe that this is looking like a great opportunity to sell the currency pair. Price could now pullback to retest the sloping daily support turned resistance before continuing it's journey downwards or it may even turn quicker at the resistance of 136.39 which it currently finds itself at.
If price breaks and holds above the sloping daily support turned resistance line, this analysis would be invalidated.
We believe that this is looking like a great opportunity to sell the currency pair. Price could now pullback to retest the sloping daily support turned resistance before continuing it's journey downwards or it may even turn quicker at the resistance of 136.39 which it currently finds itself at.
If price breaks and holds above the sloping daily support turned resistance line, this analysis would be invalidated.