GBP/JPY is expected to trade witha bullish outlook. The pair is rebounding from its support around 148.50 and is likely to challenge its key resistance at 149.50, representing an intraday horizontal level. The relative strength index is also turning up, and calls for further advance. In addition, the 20-period moving average has crossed above the 50-period one (another bullish signal).
To conclude, as long as 148.50 is not broken, likely advance to 149.50 and 149.85 in extension.
Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 148.50 with the target at 148.00.
Strategy: BUY, Stop Loss: 148.50, Take Profit: 149.50
Chart Explanation: the black line shows the pivot point. The price above the pivot point indicates long positions; and when it is below the pivot points, it indicates short positions. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 149.50, 149.85 and 150.35
Support levels: 148.00, 147.50, and 147.00
The material has been provided by InstaForex Company – www.instaforex.com