GBP/JPY: Trade ideas for August 25
The GBPJPY has encountered resistance at the level of 172.61 and now intends to return to the area below the 500 EMA (red line), since this pair could perform a retracement to the support level of 171.42 in the medium term. On that level, the GBPJPY could do a bullish rebound to resume the general bullish trend.
However, if the GBPJPY manages to make a breakout at the 171.42 level (61.8 Fibo level), it would be expected to fall until the support level of 171.10, which could put in danger our bullish outlook, since this pair would be consolidating below the 500 EMA. On the other hand, if this pair manages to make a breakout at the resistance level of 172.61, the next target would be the level of 173.20. The CCI indicator is close to the 100 level and pointing to neutral zone.
Trading recommendations: Place buy orders if the GBP/JPY does a rebound at the support level of 171.42, with take profit at the resistance level of 172.90.