The Pound hit during the European session the lowest price in almost 3-months at 129.72 but managed to hold above the 129.70/75 zone that also offered support last week. The GBP/JPY recovered from the lows and rose to 130.50 where it lost strength and pulled back to daily lows.
In the last hours the pair has been moving sideways in a range between 129.75 and 130.30, consolidating a daily decline of 0.75%.
“A strong push below 129.75 shows that the market can overcome a strong bullish attempt. But the problem with the bearish outlook is that we have support at 129.00, 61.8% retracement. Below that there is a 128.10 swing projection, and then 78.6% retracement and a common low around 126.00,” wrote Fan Yang, Chief Technical Strategist at FXTimes on it technical report on the GBP/JPY. To the upside he locates 130.70 as the near-term resistance and above 131.33.
According to Yang the daily chart show the market respecting the 200-SMA “and therefore showing some short-term bearish bias.”
Tags: pound european session lowest price pulled strength attempt problem resistance
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