Cross-rate signals: GBP/JPY remains near significant support

After the rapid decline of the pound on the general flight of investors from risks at the beginning of the week, the GBP/JPY cross rate remains near the significant support level of 151.60-00, which corresponds to the lower border of the rising channel. This trend has been traced since November of last year.

Against the backdrop of recovery of optimism in the market and a decrease in demand for safe haven assets, one should expect the pair GBP/JPY to resume its growth, which is also indicated by the preservation of the existing uptrend. Signal of entering the trade is the return of this pair to the upstream channel and fixation above support levels: 152.30 and 152.80, which opens the way to resistance levels: 154.40 and 155.40-90. Support is the recent minimum: 151.60 and 151.20-00, the renewal of which will cancel the scenario for strengthening.

Fig. GBP/JPY. The current price is 151.90.

Hanzenko Anton