Overview

Today the GBP/JPY pair takes a slightly upward move within an uptrend line, and is currently trading within slight bearish correction in order to test the support level 122.60. If the pair bounces from the support level, it will continue it bullish movement for testing the resistance level 123.75 and 124.65, if the pair is able to break this resistance area, this will indicate the bullish strength providing new sellers signals and also a good opportunity to buy enabling to reach 125.00 level.

On the other hand, if the pair is able to break the support level 122.60 and close below 4H, this will be a strong signal for Sell-deals enabling to reach the support level 121.10 testing the upward trend line. If the pair is able to break the upward line, this will indicate the bearish strength providing new buyers signals. Proceeding from today's H4 chart, technical indicators provide bullish signal, but as long as the the resistance area is unbroken, the downward trend is still expected invaildating the bullish outlook.

Resistance and Support levels 

R3(125.28)

R2(124.65)

R1(123.75)

S1(122.60)

S2(121.10)

S3(119.60)

Trading Recommendations 

According to the previous analysis, we still recommend buying with TP1 123.00 and TP2 124.05 ; SL closing 4H below the support level 122.60 .