Market Outlook and Analysis (Aug2019 Week5)
Currency Pair: GBPJPY
Fundamental Analysis – GBPJPY
Angela Merkel gave some optimism for the UK’s Boris Johnson to come up with a solution to prevent a hard exit from the EU. This gave strength to the GBP in the past week’s trading.
Technical Analysis – GBPJPY
GBPJPY D1 Chart – Horizontal and Trend Line Resistance
Thou the optimism gave strength to the GBP. However, the pair is approaching horizontal and trend line resistance at 131.00 and 132.00. Expecting any rally to be limited by these resistance levels.
GBPJPY H4 Chart – Bearish Butterfly Pattern in an Uptrend channel
The H4 charts showing us a start of a possible bullish move. A break above the resistance TL will convince me of the bullishness. Looking towards the completion of the Bearish Butterfly pattern at the 131.00 zone. Best if the indicators could also show some sort of exhaustion as the price reaches the sell zone. Keeping a close eye on this pair next week.