FX.co ★ Daily analysis of GBP/JPY for July 16, 2014

Overview

From the today's H4 chart and as it was expected yesterday, the pair might get a new bullish signal to continue its upward trend in case of closing 4H above the resistance level of 173.75 after it was tested yesterday. Today, the pair has managed to break it through. Currently, the price is testing the resistance level of 174.40 keeping its move inside the bullish channel. More bullish signals are still expected in case of closing above this resistance level with the first target few pips below the resistance level of 175.00. Hence, we should wait for more confirmations before making the decision.

Resistance and support levels: R3 (175.30), R2 (175.00), R1 (174.40), S1 (173.75), S2 (173.30), S3(172.75)