At the time of writing, cable edges slightly downas the Asian Pacific session begin, trading at 150.09 during the day. Risk aversion in the financial markets continues, as Asian equity futures are in the red, led by the Hang-Seng down almost 2%, following US stocks indices footsteps, which ended the session with losses.
In the overnight session, the British pound dipped to 149.52. However, as the European session opened, it bounced off the daily lows towards the 200-hour simple moving average (SMA), stalling the upward move, hovering around the Tuesday central daily pivot at 150.02.
The GBP/JPY daily chart depicts that the cross-currency pair has a downward bias, as shown by the daily moving averages (DMAs) residing 200-pips above the spot price. Additionally, the price action from December 15 to December 17 formed a candlestick pattern called an evening star. This bearish signal could propel the GBP/JPY towards the most recent swing low, the December 3 daily low at 148.96.
In the event of accomplishing the abovementioned, the next support would be the July 20 daily low at 148.45, followed by the February 26 at 147.40.
On the flip side, the first resistance would be the December 20 high at 150.55. The breach of the latter would open the door for further gains. The following resistance would be the December 17 daily high at 151.71, followed by 152.00, and the confluence of the 100 and the 200-DMA around the 152.30-50.
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