GBP/JPY: Trade ideas for August 06
The GBPJPY has made a pullback on the resistance level of 173.49, so the pair is trying to make a retracement to the support level of 172.93, where is located the 50.0 Fibo level and where probably the GBPJPY could conduct a rebound to continue strong in the overall bullish trend in the H1 chart.
On the other hand, the GBPJPY is facing strong resistance offered to the 500 EMA (red line), so that the pair could continue falling for several more days, but for that to occur, the GBPJPY would have to perform a breakout in the support level of 172.80 to fall to the level of 172.37. The CCI indicator is pointing downwards and near the -100 level.
Trading recommendations: If the GBPJPY does a bullish rebound at the support level of 172.93, place buy orders with take profit at the resistance level of 173.62.