FX Play of the Day: GBP/JPY’s Potential Pullback Levels

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Yo Guppy just broke below a consolidation!

Feeling a bit of FOMO from all the anti-risk moves?

Here are levels you should watch out for if you’re betting on more losses for the pound and more gains for the yen:

GBP/JPY 15-min Forex

GBP/JPY 15-min Forex Chart by TV

In case you were too busy plotting your start-of-month trading goals, you should know that credit ratings agency Fitch just downgraded the U.S.’ sovereign credit grade from AAA to AA+.

While this won’t give “DEFAULT!!!” vibes, it may limit the demand for U.S. assets and USD.

Of course, the news that the world’s largest economy has been downgraded isn’t sitting well with risk takers so far today.

GBP/JPY, which has been trading inside a range since earlier this week, has broken its range and has dipped to the S2 (182.23) Pivot Point levels.

The 100 and 200 SMAs on the 15-minute charts have also turned lower and could soon turn bearish with a crossover.

If the risk averse trading environment continues, or if traders stay away from GBP-related assets ahead of this week’s BOE decision, then GBP/JPY could maintain its bearish momentum.

GBP/JPY could break below its current consolidation at S2 (182.23) and head for the 181.90 previous area of interest.

A bit of intraday profit-taking, however, could also push GBP/JPY to revisiting the S1 (182.64) Pivot Point and broken range areas before more bears step in.

Watch how GBP/JPY interacts with the Pivot Point levels and the broken range support and resistance zones to get clues on the pair’s next direction!

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.


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About the Author: Webbey Team

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