Today we’d look at some details around the GBP/JPY currency pair, which shows the potential for growth. The GBP/JPY recently went through a number of bullish checkpoints and kept moving up consistently. The moving average at 50 and the relative strength indicator of the pair both demonstrate a stable tendency for the pair to be moving further up.
In order to predict the pair’s movement on the daily chart, it’s important to remember that if the pair is moving above the pivot at 146.15, then it’s likely that it will go up to the resistance level at 147.00; if that is overcome, the next important resistance lies at 147.35. If this is what’s going on in the chart, then we recommend opening long positions with the above-mentioned resistance levels as targets.
However, if you have any doubts about a retreat and you see the pair move under the pivot, then the appropriate strategy would be to expect a drop in the price and open short positions with targets at the support levels of 145.70 and 145.35.
At the moment of the publication of this article, the GBP/JPY is trading around 146.66, above the pivot point. The moving averages are giving us a buy signal; the technical indicators vary a bit more, but overall also lean towards a buy.
