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GBPJPY Analysis – will the new breakout continue?

jeffriess
November 28, 2019
by Joseph Jeffriess, Market Analyst

Article Recap

GBPJPY broke resistance points after Wednesday's strong rally. With the UK election approaching will we see buyers hold the developing breakout?

GBPJPY made a solid statement on Wednesday.

After spending 5-weeks rangebound we saw the GBPJPY post a 130 pip rally on Wednesday mainly driven by updates in the UK regarding their upcoming election on the 12th of December.

Price not only beat 140.75 resistance it also closed at the October 17th high. The single-day event was a very bullish statement by buyers but it just failed to beat the November 18th high. Buyers did move above this high in yesterday’s session before the JPY jumped on news that President Trump passed bills backing the pro-democracy move in Hong Kong. After a 34 pip rally that touched new 6-month highs price pulled back closing 13 pips in the red.

Looking forward we would like to see buyers hold 141.15 low which lines up with a previous high, if sellers move lower today we would also like to see buyers defend 140.80/85 or there could be a risk of a false breakout and drop back into the range.

Today’s video, we breakdown Wednesday’s and current price action on the daily GBPJPY chart.

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