According to the daily chart, the GBP/JPY pair is looking bullish for the remainder of the day. The Pound continues to struggle against all major currencies as Britain’s Prime Minister, Theresa May, is seen to be lacking direction with regards to the Brexit strategy. However, it appears the Pound is beginning to make a recovery. At the same time, the Yen has lost momentum on a reduction of risk sentiment. During the Asian trading session, the GBP/JPY pair hit a one-year low, bouncing off a support area between 140.36-140.46. With no major economic events taking place for either economy during the day, price action is expected to follow technical indicators.
CHART PATTERN: MOMENTUM INDICATORS
- Large bullish candle formed at the bottom of a significant sell-off for the pound.
- The candle formed below the 30 support level on RSI, bounced off the 26 level and closed the session above 30 on RSI.
- The market currently waits for confirmation of the bullish reversal.
Banc De Binary analysts believe bullish momentum will continue for the remainder of the day.