Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
- The sterling has been strong. The GBP/JPY rebounded after breaking the 2010 low, and is now about to test a declining channel resistance seen in the daily chart. The strength of the rally has been impressive, and for a bearish outlook from here, the conservative target could be 129.50. That is if we do get topping below or near 132.50.
- The 1H chart shows a rally taking place with an impulse wave. The internals suggest we are still to have a wave v, which in a swing projection could bring us towards 132.50.
- To me, with such a clear channel support, and clear stepping action (high highs, higher lows, not much overlap between highs, and subsequent lows), the market can clear show a violation simply with a lower low, and a lower high. I would suspect the market to make a couple of corrective downswings before heading above 132.50, and towards 135.00.
- The bearish scenario opens up if the 129.33 support pivot is broken. The bullish scenario to 132.50 opens up with a close in 1H candles above 131.70. Then a break above 132.50 targets 135.00 in the short-intermediate term.
Will the Sterling continue its recent success? We would love to hear what you think.
Subscribe and become a member to share your views and join live discussions as well as webinars about the markets.
Fan Yang CMT
Chief Technical Strategist
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.