FX.co ★ Technical analysis of GBP/JPY for October 30, 2014

The cross is trading at a 2-week high. The cross managed to hold the 20Wsma. In the daily chart, we can see the minor double top at 174.76 levels on a closing basis. On a monthly closing basis, the pair must close above 177.80 levels. In case, if the cross closes below 177.80 we can clearly see the double top formation in the monthly charts representing down side again back to 168.00 levels, 200Mema. In case, if the cross manages to close above 177.80 the pair can extend its upswing towards 180.70 and 183.50 levels. Including today, we have 1 more trading session left in the current month. In the current month, the cross erased the 3/4th of its losses. We will re-analyze the chart, in case if the pair closes above 177.80 on a monthly closing basis.

Today in Asia's session the cross held the support at 50Dsma, 174.00. We recommend buying only above 174.76 levels. The hourly stochastics is indicating sell mode. The prices are taking support at 21ema, 174.00 levels. We recommend selling below 174.00. The hourly resistance exists at 174.40 35DEMA. The pair will face heavy selling pressure below 173.60, 34hrsma, for an immediate target at 173.00.

Trade:

Buying above 174.80 for targets at 175.02, 175.90

Selling below 173.60 for targets at 173.00