GBPJPY peeps above 1H 100-MA. A look at the latest 16 February GBPJPY Technical Outlook shows that a convincing break above 150.00 is likely on strong UK retail sales. Will the UK data beat estimates by a large margin?
16 February, GKFX – Having built a base along the 1-hour 50-MA in the last 12 hours, the GBP/JPY cross is now trading on the front foot above the 1-hour 100-MA of 149.74.
The currency pair has created an inverse head and shoulders pattern on the 1-hour chart with the neckline resistance of 150.24. A convincing break to the upside could be seen if the UK retail sales number (due at 09:30 GMT) beats estimates by a big margin.
Also, the USD/JPY pair is looking oversold on technical charts and a corrective rally in the pair could also lift GBP/JPY above the neckline hurdle. As of writing, GBP/JPY is trading at 149.86 levels.
16 February GBPJPY Technical Outlook
A break above 150.24 (inverse head and shoulders neckline hurdle) would open up upside towards 150.86 (1-hour 200-MA) and 152.52 (inverse head and shoulders breakout target as per the measured height method).
On the downside, violation of support at 149.41 (1-hour 50-MA) could yield a pullback to 148.93 (support on 1-hour chart) and 147.96 (Feb. 14 low).
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