The British pound recovered some ground on Friday, as the New York session finished, trading at 153.12, down 0.29% at the time of writing. The New York session ended with an upbeat market mood, as portrayed by US stock indices, rising between 0.08% and 0.56%.

On Friday, the GBP/JPY pair reached a daily low at 152.81, but the Sterling pound recovered some losses as the American session progressed, trimming some losses, and the GBP/JPY bulls reclaimed the 153.00 level.

On the other hand, a recovery of the rate could find resistance in the weekly S3 simple pivot point first. Afterward, the 153.65/153.77 zone might keep the rate down, as it did since mid-Thursday.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The GBP/JPY Friday’s price action witnessed the pair breaking the 50-day moving average (DMA) to the downside, as the 50-DMA sits at 153.14, leaving GBP bulls at risk. The positive out of the drop in the day is that the 100-DMA was not at risk, but if the GBP/JPY selling pressure continues to mount, it could be broken, exposing the 152.00 psychological support level.

For GBP/JPY bulls to reclaim the near-term control, they will need to reclaim the 50-DMA so that they can challenge the psychological 154.00. In the case of that outcome, the following supply zone would be 156.00. According to elliot wave pattern the pair seems to be in bearish corrective structure of higher degree in the daily time frame while on the weekly chart its first impulse and we need to wait for a structure to develop. But on the daily chart, the pair is suppose to find support above 152.40 before changing the trend and entering a bearish rally. 

153.0 should prevail GBPJPY from a further fall

Nov 07 2021