GBPJPY – Key Fib Could Offer Sterling Respite

By Unknown

Minggu, 19 Juni 2016

GBPJPY – Key Fib Could Offer Sterling Respite

There has been a difficult start to the week for the British pound, the in / out referendum on the EU to be officially confirmed for June 23 and a number of key conservative politicians throw their support to "leave" campaign.

The most recent of these was the mayor of London and possible future Conservative leader Boris Johnson, the announcement that sent the pound tumbling again.

sterling fell to the lowest level since November 2013 against the yen at the beginning of the week and other losses could follow in the coming weeks.

I noted above that, with careful price projection of the head and shoulders neckline break was reached, the most aggressive projection - about 153 - will now eyes. With the pair now headed south again, this research increasingly likely

As also mentioned that ( OANDA MP. - Sterling pounded CPI Low (Video) ), the pair faces a key test first around 156.20. Not only is this level before support and resistance - in May 2013 and between September and November of the same year -. It is also the 50% retracement of the September movement in 2011 bottom in June 2015 highs

As we approach this level, it will be interesting to see if the bullish divergences appear, with the stochastic and MACD low higher display and price action making lower lows. This could provide an early warning that the pair can function in the holder here.

Of course, as always it is a secondary indicator to price action, so I would also like to see a reversal pattern occurs before I become less bearish . The bullish divergence simply warns of possible occurance.

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