The GBP/JPY pair is expected to trade with a bearish bias. The pair has broken below its 20-period and 50-period moving averages and consolidated on the downside. The 20-period moving average crossed below the 50-period one (negative signal). The relative strength index is below its neutrality level of 50 and lacks upward momentum. As long as 184.80 is resistance, look for a further downside toward 183.50.
Trading recommendations:
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 183.85. A break of that target will move the pair further downwards to 183.50. The pivot point stands at 184.80. In case 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 185.30 and the second target at 185.65.
Resistance levels: 185.30 185.65 187.25 Support levels: 183.85 183.50 183
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