Forex Trading: GBPJPY Technical Analysis – November 20, 2019

The Great Britain Pound (GBP) didn’t start well on Wednesday, it fell below 141.00, following an unfavorable economic release. As far as technical bias is concerned, it might remain bullish because of the higher high pattern printed on the graph during the last upside move.

GBP/JPY: Technical Analysis

Currently, the GBPJPY is being traded around 140.05 with a lot of support and resistance levels across the way. Talking about the support levels at first, the price may receive some support around 138.02, this level is usually known as Fibonacci level ahead of 135.83, the major horizontal level which may act as strong support preventing the price from moving downwards. Finally,  there comes support around 133.99, the low of October 11, 2019, as shown in the graph below.

GBPJPY

Talking about the upside, the price might meet the first resistance level around 141.46, which is a confluence of two trend lines acting as a powerful hurdle for allowing the price to pass through. Another resistance level is likely to come across around 145.00 the psychological number and then 148.86, the major horizontal resistance level restricting the price to increase above the said level as shown in the graph above.

Great Britain Pound (GBP) Interest Rate Decision

From a fundamental perspective, In the United Kingdom, the rate of interest remained the same this month as it was during the month before (i-e 0.75%). The consensus of economists was also for the same figure.  The interest rates are announced by the Bank of England. If it is hawkish concerning the inflationary outlook of the country’s economy and raises the interest rates,  it is considered positive for the GBP. Likewise, if the BoE has a dovish view on the UK economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish

Trade Idea

Keeping in view the price ups’ and downs over the last week, trading GBPJPY around current levels may not be a good idea.

 

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