Aug 7 , 2018
By observing the daily technical chart we can see that pair is trading and moving towards the downside as we can see the failure of rounding bottom pattern has converted all the bullish sentiments into the bearish sentiments. Presently pair is trading below the moving average lines and three consecutive bearish marabuzo pattern has confirmed the bearish sentiments.
Presently pair is trading at multi year’s low.Well pair is making successively lower highs and lower lows on daily basis and heading towards south side. The way bears are reacting it seems like they are approaching the 142 and 144 level in short term. However, some correction can’t be ruled out but that should be taken as further opportunity to sell again for those who have missed earlier.
Uncertainties surrounding Brexit seem to be the primary reason why the pound is finding it difficult to gather strength against its rivals. On the other hand, the JPY seems to be finding demand as a safe-haven on Monday amid the dismal performance of risk-sensitive EM currencies, which puts extra weight on the GBP/JPY’s shoulders. Today, overall household spending and labor cash earnings data from Japan will be looked upon for fresh impetus. The only data in the UK economic docket on Tuesday will be Halifax House Prices.
Well Odds are in favor of bears and intraday bias remains bearish on the pair as long as 147 levels remain intact. A bearish crossover on MACD indicator is favoring the bears and providing bearish signal for the time being and RSI is also providing bearish signal from below 50 territory. The 147.00 level is immediate resistance level followed by 149.00 whereas 143.00 level is strong key support level followed by 141.00 level.