GBP/JPY Forms a Price Top Ahead of BoE

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GBP/JPY Forms a Price Top Ahead of BoE

The GBP/JPY is forming a price top ahead of tomorrow’s key Bank of England monetary policy statement. Let’s take at the technical development ahead of the key event risk.

After a rally from 175.50 to 185, the market consolidated with support around 183.50. Today, price just fell below this range and thus completed a price top for GBP/JPY.

Now, if price rebounds, monitor the 184-184.25 area. If GBP/JPY holds under this area, the bearish outlook would strengthen, with the 181, and 180 handles in sight. A break above 184.25 however revives the February uptrend, and puts pressure on 185 with risk of breaking higher.

To the downside, as we mentioned, 181 and 180 are key support levels. A break below 180 would however put pressure on the 175.50-176 lows on the year.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.