Cross-rates signals: GBP/JPY is at the threshold of correction

After almost a week of growth of the GBP/JPY cross-rate, this pair came closer to the level of 152.80, the maximum of the current year. Also, this cross-rate on the day timeframe formed the “double bottom” figure and in order to test it the update of the annual maximum is necessary.

But, given the significant overbought of the pound, without correction, further strengthening of the British is unlikely. Also, do not forget about the British’s significant dependence on politics and specifically on the Brexit negotiations.

Given the current situation, the uncertainty zone is the levels from 151.30-50 to 152.80, such a wide channel is due to political risks and high volatility of the pair. A reversal zone is 151.30-152.00, the exit of the price downwards will indicate the formation of a deep correction to the support levels: 150.30 and 149.70. Update of the current maximum at 152.50 cancels the scenario of a decrease and will indicate further growth of the pair.

For more details on the situation about cross-rates and not only follow Technical Analysis.

The GBP/JPY chart H4. The current price is 151.60.

Hanzenko Anton