GBP/JPY's Decline and Support Break Signal Short Term Reversal

Thursday, 11 July 2024, 13:56
The GBP/JPY currency pair experienced a steep decline and broke important support at 206.12, indicating a potential end to the recent uptrend. This is accompanied by bearish divergence in the 4H MACD, suggesting a short term top around 208.09. While further downside is possible, a rebound is anticipated once the price reaches the 38.2% retracement level at 201.69, leading to a period of consolidation below the recent peak.
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GBP/JPY's Decline and Support Break Signal Short Term Reversal

GBP/JPY Mid-Day Outlook

GBP/JPY's steep decline and strong break of 206.12 support suggest that a short term top is formed at 208.09, on bearish divergence condition in 4H MACD.

While deeper decline cannot be ruled out, downside should be contained by 38.2% retracement of 191.34 to 208.09 at 201.69 to bring rebound, and set the range of consolidations below 208.09.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

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