The GBP/JPY pair is expected to trade with a bearish bias. The pair is turning down away from its key resistance at 179.80 and is heading lower. Both descending 20-period and 50-period moving averages maintain a bearish bias. And the relative strength index lacks upward momentum. We remain negative below 179.80 with targets at 178.50 and 177.85.
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 179.00. A break of that target will move the pair further downwards to 178.50. The pivot point stands at 180.10. 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 180.60 and the second target at 181.20.
Resistance levels: 180.15, 180.60, 181.20
Support levels: 178.50, 177.85, 177
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