GBPJPY retests key daily cloud top support as pound comes under renewed pressure
The cross probed again key supports at 148.17/22 (daily cloud top / asymmetric H&S neckline) on Monday after sterling came under pressure on concerns about Brexit negotiations and political strength of UK PM Theresa May.
Renewed bearish pressure after bullish end on Friday turned near-term bias with bulls again with main risk on sustained break below 148.17/22 pivots which could trigger significant downside.
Bearish scenario would expose 147.77/67 (17 Oct trough / Fibo 38.2% of 139.30/152.85 ascend) with extension lower to look for test of next key point at 146.93 (09 Oct higher low).
Meanwhile, the cross may show further hesitation ahead of key supports as today’s downside rejection is the third straight in past few sessions.
Converged 20/10SMA’s offers solid barriers at 149.53/71 respectively which are expected to limit recovery attempts.
Res: 149.44; 149.53; 149.71; 150.00
Sup: 148.44; 148.17; 147.67; 146.93