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Talking Points:
- GBP/JPY Technical Strategy: Flat
- Support: 193.47, 192.19, 191.32
- Resistance: 194.39, 195.89, 197.10
The British Pound is attempting to recover after declining following the formation of a Bearish Engulfing candlestick pattern. Near-term resistance is at 194.39, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 38.2% level at 195.89. Alternatively, a move below the 14.6% Fib at 193.47 clears the way for a test of channel floor support at 192.19.
Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on a long or short side from a risk/reward perspective. With that in mind, we will continue to stand aside until a more attractive opportunity presents itself.
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— Written by Ilya Spivak, Currency Strategist for DailyFX.com