GBPJPY (1H) - short term bullish bias
The pound sterling has pulled back to the its pre-election level just over the 4H support area at round 142.80. The bullish RSI divergence where a lower low in the price met a higher low in the indicator meant that the bearish momentum had decreased, a prerequisite for a potential rebound. If the demand area hold well we would expect a rally above the moving averages and the immediate resistance of 143.80. On the other hand, a drop below 142.80 could dent the medium term uptrend.
Key support: 142.80
Key resistance: 143.80
The pound sterling has pulled back to the its pre-election level just over the 4H support area at round 142.80. The bullish RSI divergence where a lower low in the price met a higher low in the indicator meant that the bearish momentum had decreased, a prerequisite for a potential rebound. If the demand area hold well we would expect a rally above the moving averages and the immediate resistance of 143.80. On the other hand, a drop below 142.80 could dent the medium term uptrend.
Key support: 142.80
Key resistance: 143.80