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6 Aug 2014
GBP/JPY: 173.00 pivot is under attack
FXStreet (Moscow) - GBP/JPY has crept to 173.00 support and trying to get below this level on the back of JPY strength across the board
GBP/JPY bulls on the alert
GBP/JPY managed to finish the day above 173.00 level thanks to GBP recovery across the board. British currency has been severely and unjustly sold of lately on the back of recent data from the UK that raised doubts about the further pace of the British recovery. Though better-than expected Service PMI (59.1 in July against expected 58.1 and 57.7 in June) somewhat reassured them. Potentially positive industrial production report after dismal May numbers coupled with weaker JPY might support bullish momentum of GBP and push the cross towards 173.50 on the intraday level. The downside correction is likely to be limited by 173.00/90, though once the cross is below this level, the selling pressure will increase and may take it to 172.70.
What price levels and patterns have to be considered?
With spot trading at 173.00, we can see next resistance ahead at 173.07 (Weekly Classic PP), 173.12 (Hourly 20 EMA), 173.12 (Hourly 200 SMA), 173.18 (Daily Classic PP) and 173.21 (Hourly 100 SMA).
Support below can be found at 172.99 (Daily Low), 172.84 (Daily Classic S1), 172.78 (Yesterday's Low), 172.59 (Monthly Low) and 172.59 (Weekly Low).
GBP/JPY bulls on the alert
GBP/JPY managed to finish the day above 173.00 level thanks to GBP recovery across the board. British currency has been severely and unjustly sold of lately on the back of recent data from the UK that raised doubts about the further pace of the British recovery. Though better-than expected Service PMI (59.1 in July against expected 58.1 and 57.7 in June) somewhat reassured them. Potentially positive industrial production report after dismal May numbers coupled with weaker JPY might support bullish momentum of GBP and push the cross towards 173.50 on the intraday level. The downside correction is likely to be limited by 173.00/90, though once the cross is below this level, the selling pressure will increase and may take it to 172.70.
What price levels and patterns have to be considered?
With spot trading at 173.00, we can see next resistance ahead at 173.07 (Weekly Classic PP), 173.12 (Hourly 20 EMA), 173.12 (Hourly 200 SMA), 173.18 (Daily Classic PP) and 173.21 (Hourly 100 SMA).
Support below can be found at 172.99 (Daily Low), 172.84 (Daily Classic S1), 172.78 (Yesterday's Low), 172.59 (Monthly Low) and 172.59 (Weekly Low).