GBP/JPY Respects a Price Top – Bearish Outlook

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GBP/JPY Respects a Price Top - Bearish Outlook

The GBP/JPY was bullish in February, rallying from 175.50 to 185. Let’s take a look at the charts as this rally seems to be coming to an end.

The market started to consolidate between 183.54 and 185 last week. This week, traders pushed the pair below 183.54 and formed a price top. Then, after the Bank of England’s monetary policy statement, price jolted but found resistance from the broken range as well as the 100-, and 50-period SMAs in the 4H chart. This confirms topping and suggests a bearish outlook at least in the short-term.

The 200-period SMA and around the 181 will be the first target, though the key levels to monitor for support is in the 179.40-180.30 support/resistance area.

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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.