Who’s ready to end the week with a bang?
GBP/USD and GBP/JPY are hanging out near notable resistance levels today.
Think the pound will give back pips against the dollar and yen?
A few days ago, we talked about GBP/USD popping higher and almost reaching a broken support level.Well, the bulls paid attention and pushed the pound into an uptrend! Unfortunately, they encountered major resistance around the 1.3625 zone, which is also near the 61.8% Fib pullback and 100 SMA on the 4-hour chart.
Trend warriors who believe that the pound will drop back to its September lows can start shorting at current levels. You can even place stops just above the 200 SMA or 1.3700 MaPs if you’re confident in the pound’s future weakness!
For the bulls, you’ll have to wait for a clear break above the resistance zone that we’re watching. A trip to 1.3875 – 1.3900 is still doable but the pound will probably need a few more buyers before we see enough bullish momentum.
I spy with my eye a descending triangle that’s still solid!GBP/JPY is poppin’ wicks just above 152.00, which lines up with a descending triangle resistance on the 4-hour time frame. As you can see, the bears have been defending the trend line since late May.
Pound bears can start scaling in at current levels and aim for the 149.25 support for a good risk ratio.
Meanwhile, GBP/JPY bulls would have to wait for a clear break above the triangle resistance before aiming for previous resistance levels like 155.00.
What do you think? Which way will GBP/JPY go in the next trading sessions?