GBPJPY reversed after UK inflation data earlier , however it has retraced to significant 200 EMA level and areas of previous good volume / reversal points ( see chart )
Given also that :
200 Hourly EMA providing technical resistance
Running into a cluster of previous volume areas
Overall recent trend is still bullish
Despite the data this morning giving GBP a push lower , this move appears way too aggressive for the data and likely more position covering than fundamental given that :
Bank of England still expect inflation to peak at 3.75% in Q3
Energy , Tariffs and general uncertainty in the market
Some analysts still calling for 4% in April and May
Stop 192.85
Entry 193.80
Target 194.85
Good risk reward 1:1 good reversal probability given the above observations .
Possible retrace as US markets arrive but overall sentiment remains .
Given also that :
200 Hourly EMA providing technical resistance
Running into a cluster of previous volume areas
Overall recent trend is still bullish
Despite the data this morning giving GBP a push lower , this move appears way too aggressive for the data and likely more position covering than fundamental given that :
Bank of England still expect inflation to peak at 3.75% in Q3
Energy , Tariffs and general uncertainty in the market
Some analysts still calling for 4% in April and May
Stop 192.85
Entry 193.80
Target 194.85
Good risk reward 1:1 good reversal probability given the above observations .
Possible retrace as US markets arrive but overall sentiment remains .
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.