GBP/JPY surrenders gains, drops below 23.6% Fibo resistance

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 17, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The GBP/JPY pair trimmed gains to trade below 163.40, which is the 23.6% Fibo retracement of the downtrend witnessed this month.

    Offered at 163.75

    The rally in the European stocks failed to weaken Yen. Hence, the cross fell back from the daily high of 163.75 levels. Moreover, the GBP/USD pair is struggling to extend gains above 1.43 handle. Hence, the GBP/JPY cross too is having a tough time holding on to its gains.

    At the time of writing, the cross was trading around 163.30 levels. The pair remains at the mercy of the oil price gyrations and the resulting effect on the risk sentiment ahead of the Fed minutes release.

    GBP/JPY Technical Levels

    The immediate resistance is seen at 163.40 (23.6% of 175.02-159.81), above which the pair could extend gains to 163.98 (Jan 20 low). On the other hand, a breakdown of 161.56 (daily low + support on 4-hr chart) could see the cross re-test 159.81 (Feb 11 low).
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