Divergence on GBP/JPY

Divergence on GBP/JPY

The current technical pattern signals a possible correction of the GBP/JPY currency pair after a continuous fall. In a trading instrument, a classic reversal formation has been formed – the price and MACD histogram divergence (H4 timeframe). At the moment, the GBP/JPY currency pair is consolidating near the local resistance level of 137.850. We recommend paying attention to this situation.

If the price fixes above 137.850, you should consider buying GBP/JPY. The immediate goal for profit taking is a round level of 139.000. The movement is tending to the correction zone of 50.0%-61.8% (141.000-142.000). Confirmations and entry points to the market should be looked for on lower timeframes. When following a position, we recommend using a trailing stop.

by JustForex 2019.06.05

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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