GBP/JPY is expected to trade with a bullish bias. The pair is posting a consolidation but is staying above its key support at 128.80. The crossover above its 20-period moving average is a bullish signal, and the relative strength index has broken above a negative trend line. As long as 128.80 is not broken down, further bounce is preferred with 130.35 and 131.00 as targets.
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 130.55 and the second one at 131.60. In the alternative scenario, short positions are recommended with the first target at 127.95, if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 127.55. The pivot point lies at 128.80.
Resistance levels: 130.55, 131.00, 132
Support levels: 127.95, 127.55, 126.80
The material has been provided by InstaForex Company – www.instaforex.com
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