Forex Marketz Daily Forex News – Fully Markets Update
GBP/JPY (194.808)
- Support Levels: 193.20. 192.38, 191.00
- Resistance Levels: 194.59, 195.81, 196.80
- Trade Strategy: Stand Aside
The GBP/JPY Forex market gapped sharply higher crashing through the falling trend line in place since mid-June, which had been capping any move higher. Please see the below GBP/JPY daily MT 4 chart for today’s technical analysis.
Technical Analysis
Looking at today’s GBP/JPY technical analysis there is technical resistance at 194.59. A daily close above this technical level challenges the next technical resistance lining up at the end of a cluster zone. This cluster area runs from 195.70 to 195.81. The alternative GBP/JPY technical analysis, should the Sterling push lower, thus sending this Forex market lower, notes support lining up at 193.20. A break below this technical level challenges the next technical support lining up at 192.38.
Trade Strategy
There is a lot to consider before making a trade decision in the GBP/JPY Forex market. There is event risk coming out of the United Kingdom today as they are set to release not only their inflation number but the Bank of England (BOE) is holding its monetary policy meeting today. The BOE is expected to stand pat on interest rates keeping them low at the record low of 0.5 percent. This alone should cause some Sterling volatility during the course of today’s trading day. From the technical analysis standpoint, the GBP/JPY is trading too close to a technical resistance level to warrant a long GBP trade. From a risk to reward perspective timing is not quite right. There are also no key bearish reversal signals warranting a short GBP trade at this time. A short trade is a bit premature. Taking everything in account, I will stand aside and monitor my trading charts for a more opportune trade opportunity to present itself. For today, I am flat in the GBP/JPY Forex market.
