GBPJPY – Rallies continue to attract sellers

Technical

GBPJPY – Rallies continue to attract sellers

Monthly: Price action in February posted a bearish Outside Month, often an indication that the rally is over and the start of a new downward bias. Intra-month rallies continue to be sold and further downside is expected.

Weekly:  The weekly chart highlights a corrective channel formation which is trading close to the bottom of the channel (138.28). Price action over the last 4 weeks has been negative and this looks likely to continue after the break of the previous swing low (143.19). What was support, now becomes resistance and we look to sell into rallies.

Daily: The daily chart highlights a bearish channel formation. The last couple of days of price action have been inside days indicating indecision. Prices have reacted from 140.00 but we expect rallies to attract sellers and further downside to target a move to 136.00.

We look to Sell at 143.00

Stop: 144.50

Target: 140.00 and 136.00