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Gbpjpylong

GBP/JPY - Long - Technical Analysis This is my technical breakdown on GJ. GJ is in a bearish condition on the higher time frames, however, we've just had a strong breakout of a descending wedge (bullish pattern), caused by the UK electing their new Prime Minister. Now we've had this break out, I'd be looking to go long on GJ on the retest which could happen at either 163.500 or 162.500, where price previously respected these levels as resistance. 162.500 offers the most confluences, but with this bullish strength, we could see GJ respect 163.500 - I'd be looking on the H1 timeframe for a rejection / indication that GJ wants to go long. The UK electing a new PM, could be the catalyst to drive GJ higher breaking this years highs, however, I'd be looking to target 166. and 168. If we get a break of 168, we could see price hit 170 or even 175. a very bold psychological level
Long
by TomBray1
UK electing new leader; how will this affect the GBP? As the UK will announce a new Prime Minister on September 5th, we might expect heightened volatility in the GBP in the days before and after the election result. Moreover, the new policymaker has the potential to change the long-term trend of the pound, with the potential reforms conducted impacting the UK economy. Only a few days remain until the new prime minister is appointed, so the current polls are indicative of the election's results projections, especially if the difference is significant. Liz Truss is ahead of Rishi Sunak, with the recent polls placing Truss 30 points ahead of Sunak. If nothing radical happens in the next several days, Liz Truss will be a prime minister, with odds of 91%, according to The Telegraph. What are the implications for GBP? Liz Truss stands out by having an agenda including popular policies, such as lowering taxes. On the contrary, Rishi Sunak is focused on tight fiscal policies, including raising corporate taxes. In an already high-inflation environment, low taxes could push consumer prices even higher. The Bank of England is likely to step in and raise the interest rate in response, potentially supporting the GBP. Therefore, if Liz Truss takes control of the UK government, the GBP may strengthen. The bearish sentiment for GBP may occur if Rishi Sunak wins. Technical view on GBP The GBP bulls may want to look at GBP/JPY, as the yen has been weak across the board in 2022. The pair is in a long-term uptrend, as the prices stay above 200-day MA. Since the beginning of August, GBPJPY has been consolidating under 50 and 100-day MAs, forming a triangle. The breakout above the upper border and MAs around 163.0 may end the long-term correction and send prices to the 168.0 resistance. Alternatively, GBP/USD could be an appropriate pair to go short if the pound acts weak. As seen above, the market is approaching Covid-19 lows near 1.14, with local resistances at 1.18 and 1.22.
by BlackBull_Markets
UK electing new leader; how will this affect the GBP? As the UK will announce a new Prime Minister on September 5th, we might expect heightened volatility in the GBP in the days before and after the election result. Moreover, the new policymaker has the potential to change the long-term trend of the pound, with the potential reforms conducted impacting the UK economy. Only a few days remain until the new prime minister is appointed, so the current polls are indicative of the election's results projections, especially if the difference is significant. Liz Truss is ahead of Rishi Sunak, with the recent polls placing Truss 30 points ahead of Sunak. If nothing radical happens in the next several days, Liz Truss will be a prime minister, with odds of 91%, according to The Telegraph. What are the implications for GBP? Liz Truss stands out by having an agenda including popular policies, such as lowering taxes. On the contrary, Rishi Sunak is focused on tight fiscal policies, including raising corporate taxes. In an already high-inflation environment, low taxes could push consumer prices even higher. The Bank of England is likely to step in and raise the interest rate in response, potentially supporting the GBP. Therefore, if Liz Truss takes control of the UK government, the GBP may strengthen. The bearish sentiment for GBP may occur if Rishi Sunak wins. Technical view on GBP The GBP bulls may want to look at GBP/JPY, as the yen has been weak across the board in 2022. The pair is in a long-term uptrend, as the prices stay above 200-day MA. Since the beginning of August, GBPJPY has been consolidating under 50 and 100-day MAs, forming a triangle. The breakout above the upper border and MAs around 163.0 may end the long-term correction and send prices to the 168.0 resistance. Alternatively, GBP/USD could be an appropriate pair to go short if the pound acts weak.
by BlackBull_Markets