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GBP/JPY revisits daily lows on BOE

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 8, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - After recording fresh two-week highs at 184.12, the GBP/JPY cross failed to sustain at higher and reverted to the hourly 50-SMA support, with the sell-off triggered by the BOE decision.

    GBP/JPY drops to hourly 50-SMA

    Currently, the GBP/JPY pair trades -0.19% lower at 183.50, having tested session lows at 183.35 post the BOE announcement. The GBP/JPY cross snapped brief recovery and surrendered the 184 handle, falling back in the red zone as the pound ran through offers as the BOE made no changes in its policy decision, leaving the benchmark rate unchanged at 0.5%. While the minutes also failed to lift the sentiment around sterling.

    While a stronger yen continues to weigh on the cross, thus adding to renewed selling pressure seen following the BOE minutes release.

    GBP/JPY Technical Levels

    To the upside, the next resistance is located at 184.10/12 (Oct 7 & Today’s High) levels and above which it could extend gains to 184.44 (daily R1) levels. To the downside, the immediate support might be located at 183.37/35 (Hourly 50-SMA & Today’s Low) below that at 183 (round number) levels.
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