TradingView
Allmypips
Sep 6, 2019 7:25 AM

Limited Bullish and correction towards 133.10 level Long

British Pound/Japanese YenFXCM

Description

The UK parliament yesterday, voted in favor for a law, saying that the UK can not leave the EU without a deal. That will likely mean a general election will be held on October 15. The outlook for no hard Brexit helped GBP, so GBP/JPY rallied strongly towards the first serious resistance at 130.70. We expect this resistance to hold the first test and a correction towards 128.19 before the next serious attempt to break clearly above 130.70 for a continuation towards 132.84.
Only a break back below 126.64 will reinstate the downtrend, but the potential downside should remain very limited.
R3: 131.80
R2: 131.54
R1: 131.17
Pivot: 130.70
S1: 130.16
S2: 129.15
S3: 128.67
Trading recommendation:
We bought GBP at 129.85 and we will take 50% profit here at 130.54 and keep our stop at 126.50 for the remaining 50%. We will re-buy GBP at 128.25 if possible.

More