- The pound has pared some losses thanks to weak Yen and upbeat UK manufacturing data
- If it does not exceed 190.75, the bearish structure would remain intact.
- An AB=CD correction could take the pair to 189.70.
The Pound rises moderately on Tuesday, helped by a somewhat weaker yen, which suffers when US Treasury yields rise, and by bullish data from the British manufacturing sector. However, the bulls are likely to be challenged at the 190.75 area.
GBP/JPY Price Analysis: Technical Outlook
The pair has completed a bullish cycle at 193.55 and is undergoing a corrective reversal with room for further declines. The bears have so far held back at the 61.8% Fibonacci retracement of the March rally, but a failure to return above 190.75 would keep the negative structure intact.
An AB=CD correction would push the pair through the 190.11 support zone towards the 189.60 level. On the contrary. a confirmation above 190.75 and 1.91.50 would negate this view.
GBP/JPY 4-hour chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
