Technical analysis of GBP/JPY for July 30, 2015

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GBP/USD is expected to trade with bullish bias. The pair is consolidating below its 20-period and 50-period intraday MAs. The intraday RSI indicator is below its neutrality area at 50. Nevertheless, a support base has formed around 193.50, which should limit the downside potential. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as 193.50 is not broken, look for a technical rebound towards 194.70 and even 195.20 in extension.

Technical comment:

Daily chart is positive biased as the MACD and Stochastic are bullish.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price keeps above its pivot point, long positions are recommended with the first target at 194.70 and the second target at 195.20. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 193. A break of this target would push the pair further downwards, and one may expect the second target at 192.45. The pivot point is at 193.50.

Resistance levels: 194.70 195.20 196

Support levels: 193 192.45 192

The material has been provided by InstaForex Company – www.instaforex.com

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