The next leg down is underway?
The GBPJPY cross looks vulnerable to a big move to the downside in the coming months.
Will it take place now?
The GBPJPY appears to be turning down following the break of its uptrend channel support yesterday.
Further prices confirmation is needed to reaffirm our view that the GBPJPY could soon move below 180.242 and test 174.884 in the coming months.
A drop below 184.314 would likely confirm our bearish view on the GBPJPY cross.
In the near term, we cannot discount that there could still be one more move higher to above 188.813 and test the 62%FR at 189.54 before the next leg down takes place.
Nonetheless, the longer term bearish view is still intact as long as prices stay below 195.28.
This pair has got good potential for a big move lower in the coming days. (Read Report)
Source : CIMB Research
Labels: Forex, Technical Analysis