FX.co ★ Daily analysis of GBP/JPY for August 06, 2014

Overview

Yesterday's closing below the Resistance level of 173.30 gave the price an opportunity for bearish move. As shown here, the price is trying to continue its bearish move by breaking the Support level of 172.60 and closing 4h below. In that case, we might get another opportunity for more sell signals. It opens the way towards the level of 172.30, as the first target and the price should test the Support level of 171.75 afterwards to continue its bearish move. But as long as the price stabilizes above the Support level of 172.60, it cancels the first scenario.

Resistance and support levels: R3 (174.40), R2 (173.75), R1 (173.30), S1 (172.60), S2 (172.30), S3 (171.75).