Today we would take a look at the GBP/JPY currency pair. The pair today will be influenced by the Bank of Japan’s loose monetary policy and a decision from the United Kingdom’s Bank of England on whether to increase interest rates.
Our overall expectation is that today the pair will be moving up, since the price is consistently trading above the important moving averages at 20 and 50. This is further confirmed by the RSI indicator which remains above 50, indicating that the pair will not be going down today.
Our trading logic for the GBP/JPY today is pretty straightforward. As long as the pair remains above the pivot (which we have strong indication to believe), then look at the nearby resistance levels that may be touched and overcome. These lie at 151.85, 152.30, and 152.90. In the opposite scenario, if despite all bullish expectations the pair starts to drop in price, then we should go short on the GBP/JPY with a target at 150.40, our nearest support. Below it lie the further supports at 150 and 149.55.
For now we can take a buy order with a T/P at the first resistance of 151.85. Just to be safe, place a stop-loss order right above the first support at 150.80.
