GBP/JPY Dropping Below the Trend Line

The GBP/JPY rally and profit taking on short trades that happened on Friday has been negated by an early Monday drop and sell off. Brexit concerns are still weighing on the pound and investors tend to flee in the JPY safe haven. The GBP/JPY, popular “Dragon” dropped below the trend line and a subsequent retest of the POC zone might spur another selloff. 149.10-149.40 is the POC zone (D L4/L4, EMA89, 61.8 fib, trend line X cross). Rejection targets 148.55 and a strong h1 breakout or 4h below the 148.40 might target 148.00 and 147.83.

GBP/JPY 1H Chart

• W L3 – Weekly Camarilla Pivot (Weekly Interim Support)

• W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)

• W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)

• D H4 – Daily Camarilla Pivot (Very Strong Daily Resistance)

• D L3 – Daily Camarilla Pivot (Daily Support)

• D L4 – Daily H4 Camarilla (Very Strong Daily Support)

• POC – Point Of Confluence (The zone where we expect price to react aka entry zone)

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This article was originally posted on FX Empire

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