NEWS :GBP/JPY technical analysis: Bulls fail to defend 200-hour SMA post-UK PMI, seems vulnerable
- The GBP/JPY cross extended the previous session’s pullback from near three-week tops and weakened farther for the second straight session on Tuesday.
- The intraday bearish pressure remained unabated following the release of awful UK construction PMI, which added to Monday’s weaker manufacturing PMI.
Sustained weakness below a confluence support – comprising of 100-hour SMA and 38.2% Fibo. level of the 135.37-137.80 recent corrective bounce from multi-month lows, was seen as a key trigger for intraday bearish traders.
A subsequent slide below 200-hour SMA and 50% Fibo. level now seems to have paved the way for the resumption of the prior/well-established bearish trajectory amid heightened UK political and economic uncertainty.
Meanwhile, technical indicators on 4-hourly/daily charts maintained their bearish bias and add credence to the negative outlook, albeit slightly oversold conditions on the 1-hourly chart might help limit deeper losses.
A follow-through selling below 61.8% Fibo. level, around the 136.30-25 region, will reinforce the bearish bias and accelerate the slide towards testing sub-136.00 level en-route mid-135.00s and multi-month lows.
GBP/JPY 1-hourly chart
|Today last price||136.5|
|Today Daily Change||-0.56|
|Today Daily Change %||-0.41|
|Today daily open||137.06|
|Previous Daily High||137.8|
|Previous Daily Low||136.74|
|Previous Weekly High||137.34|
|Previous Weekly Low||135.8|
|Previous Monthly High||138.33|
|Previous Monthly Low||135.37|
|Daily Fibonacci 38.2%||137.14|
|Daily Fibonacci 61.8%||137.39|
|Daily Pivot Point S1||136.6|
|Daily Pivot Point S2||136.14|
|Daily Pivot Point S3||135.54|
|Daily Pivot Point R1||137.66|
|Daily Pivot Point R2||138.26|
|Daily Pivot Point R3||138.72|