GBP/JPY Our expectations: Rising mid termed movement, correction to support zone levels, coinciding with 38.2% Fibo from the bottom of August 24th to the high of September the 21st.
GBP was strongly benefited from the news today, that Michael Barnier could propose a 2-year long transition period, in which UK remains on the common market. Barnier will make the offer on October 13th. This is very bullish for the GBP.
GBP/JPY failed to break the multiple support zone, and even it was declining for most of the day, the D1 bar closed bullish.
For a more precise entry, we wait for a breakaway of the inner resistance at 149.55 and go long with SL 147.00.
Alternative scenario: If the mood shifts, and the price goes below the zone, the next support is at 145.4 - 50 EMA. The second support zone is at 142.99 - 200 EMA. There, after a price action signal we could go long again.
Demarker shifted and broke above over-sold levels - bullish signal.
Jr Trader Alexander Kumanov
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