Facts:
- GBPJPY bounced off the key support at 193.50
- The pair has been trading in a long-term upward trend
Recommendation:
Trade: Long position on GBPJPY at market price
Target: 197.05, 199.20
Stop: 192.35
Opinion:
GBPJPY has been trading in an upward trend recently. Looking at the H4 interval, we can see that the pair drew a local downward correction and the bulls managed to halt the downward move at the key support at 193.50.The support is marked with a lower limit of 1:1 structure and 38.2% Fibonacci retracement. According to the Overbalance methodology, as long as the price sits above the aforementioned support, the main sentiment remains bullish. Taking this into account, one could expect the price to move higher. We recommend going long GBPJPY at market price with two targets: 197.05 and 199.25. We also recommend placing a stop loss at 192.35.
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Source: xStation5
