You are here: Home > articles > Forex > Technical Analysis – GBPJPY attempting cloud breakout; outlook more bullish
Technical Analysis – GBPJPY attempting cloud breakout; outlook more bullish
April 9, 2018 2:26 pmVideo
Latest News
- Trading Signals for EUR/USD for May 3-5, 2024: sell below 1.0803 (overbought – 5/8 Murray) May 3, 2024
- Trading Signals for GOLD for May 3-5, 2024: sell below $2,320 or below $2,300 (21 SMA – 200 EMA) May 3, 2024
- Technical Analysis – GBPUSD advances above descending trendline May 3, 2024
- USD experiences day X May 3, 2024
- Bitcoin licks wounds as Fed comes on the rescue – Crypto News May 3, 2024
- GBP/USD: trading plan for the US session on May 3rd (analysis of morning deals). The pound is preparing to get out of the May 3, 2024
- EUR and GBP may drop May 3, 2024
- EUR/USD: trading plan for the US session on May 3rd (analysis of morning deals). US data will be the key moment of the week May 3, 2024
- USD/JPY: Simple trading tips for novice traders for May 3rd (US session) May 3, 2024
- GBP/USD: Simple trading tips for novice traders for May 3rd (US session) May 3, 2024
- Video market update for May 03, 2024 May 3, 2024
- EUR/USD: Simple trading tips for novice traders on May 3rd (US session) May 3, 2024
- Could the BoE adopt a more dovish stance on Thursday? – Preview May 3, 2024
- EUR/USD. May 3rd. Bulls don’t give up without a fight May 3, 2024
- GBP/USD. May 3rd. Bears are counting on a strong US labor market May 3, 2024
- Market Comment – Stocks enjoy Fed-induced bounce as dollar slips ahead of NFP May 3, 2024
- Weekly Forex Outlook: 03/05/2024 – BoE and RBA decisions headline a calm week May 3, 2024
- Week Ahead – BoE and RBA decisions headline a calm week May 3, 2024
- USD/JPY: trading tips for beginners for European session on May 3 May 3, 2024
- GBP/USD: trading tips for beginners for European session on May 3 May 3, 2024
GBPJPY is looking more bullish in the short to medium term as it extends its gains from March’s 5-month low of 144.98 to above the 151 handle. The pair has been trying to break above the Ichimoku cloud during the past two sessions but failed on Friday to close above it. Prices are back above the cloud today, rising to 2-month highs.
A successful daily close above the cloud top is possible given the bullish short-term indicators and would strengthen the current upside momentum. The RSI is trending upwards in positive territory but has yet to reach overbought levels, suggesting there is scope for additional gains in the near term. However, there is a risk of a downside correction according to the stochastic oscillator as the %K line is already in overbought territory and could be about to record a bearish cross with the %D line.
In case of a downwards reversal, immediate support is likely to come from the top of the cloud at 150.75. Not too far down, another support point to watch is the psychological 150 level, which also coincides with the Tenkan-sen line, and further below is the 50-day moving average (MA). A breach of the 50-day MA (currently around 149.35) would weaken the positive momentum and shift the focus back to the downside.
However, should the pair stick to its current uptrend, resistance could come at the 152 level, while further up, 153.65 could be the next major obstacle. A break above 153.65 could clear the way towards February’s 19-month top of 156.60.
Related Posts: