GBP/JPY is under pressure. The pair has been capped by its descending 50-period moving average, and remains on the downside. Meanwhile, the relative strength index lacks strong upward momentum. European stocks remained under pressure with the STOXX Europe 600 losing 1.3%. Germany’s DAX shed 1.8%, the U.K.’s FTSE declined 0.7%, and France’s CAC was down 1.8%.GBP/USD surged 1.4% to 1.3355 on tuesday. Although the Markit/CIPS U.K. Construction PMI edged down to 45.9 in July, the lowest level since June 2009, it was still better than expected. As long as 135.60 holds as the key resistance, a break below 133 is possible.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 133.85. A break below this target will move the pair further downwards to 133.00. The pivot point stands at 135.60. If the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 136.30 and the second one at 137.10.
Resistance levels: 136, 137.10, 137.95
Support levels: 133.85, 133, 132
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
GBP/JPY is under pressure. The pair has been capped by its descending 50-period moving average, and remains on the downside. Meanwhile, the relative strength index lacks strong upward momentum. European stocks remained under pressure with the STOXX Europe 600 losing 1.3%. Germany’s DAX shed 1.8%, the U.K.’s FTSE declined 0.7%, and France’s CAC was down 1.8%.GBP/USD surged 1.4% to 1.3355 on tuesday. Although the Markit/CIPS U.K. Construction PMI edged down to 45.9 in July, the lowest level since June 2009, it was still better than expected. As long as 135.60 holds as the key resistance, a break below 133 is possible.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 133.85. A break below this target will move the pair further downwards to 133.00. The pivot point stands at 135.60. If the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 136.30 and the second one at 137.10.
Resistance levels: 136, 137.10, 137.95
Support levels: 133.85, 133, 132
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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