Forex Trading: GBPJPY Technical Analysis – January 28, 2020
Day after day, we see the GBPJPY decline, in the graph below. Although we have noticed a few days ago that the pair was very effectively restoring their lost place, at the end of the last week the situation is inverting itself and the pair is dropping badly and hence with the price of below the 142.00 is marked on the graph today. Nonetheless, the technical bias is still bullish, due to the lower high move printed on the graph in the last downside movement.
GBP/JPY: Technical Analysis
As of now, the GBPJPY quoted itself at the price of 141.63, the graph below shows that the price is supported by the number of the support levels that provoke the hope that the price will soon move forward. Immediately after the price, it is the level of the support at 140.61, the trendline support, soon after it, there is the Fibonacci level support of 139.77, and then at 137.66, there is the major horizontal support.
On the upside, right above the price, there is the trendline resistance of 142.02, which might hit it as it moves forward, ahead of 23.6% Fib level resistance of 142.33, then at the little distance, far another trendline resistance stands at 144.11.
UK’s Net Public Borrowing
One of the big indicators that result in GBP appreciation is the UK’s Net Public Borrowing, which was expected to rise to £ 4.6, but on January 22, 2020, it reported t £ 4.04 B, if the Net Borrowing is negative, which means that UK accounts are surplus, and that should be good for GBP.
At this moment, investing the money in GBPJPY could be rational, as there are support levels at the back of the price that provide it, the strength to rise above and get back to the highest point.