GBPJPY → Pound Sterling correction on the fundamental background

22 сент. 2023 г.

GBPJPY is forming an attempt to change the trend. The market on the background of the fundamental component related to inflation and the UK interest rate breaks the support of the ascending price channel and fixes in the red zone

The currency pair is forming consolidation and following the weakening of the Pound Sterling is heading downwards. From the point of view of technical analysis - the main potential target in the medium term is the support at 177.4 - the extreme point of the shakeout before the last rise.
Most likely, when the Central Bank of Great Britain announced the halt of rate hikes and further rate cuts, the currency started to form a correction after the tight policy.
After breaking the support, a correction to the previously broken boundary is formed on the chart and the currency pair consolidates for further decline. In the long term, I expect a medium-term decline in the price to the specified target.

Support levels: 181.2
Resistance levels: 181.96
The medium-term target is indicated on the chart. Fundamental and technical analysis indicate further decline.

Regards R. Linda!