GBP/JPY Technical Analysis: Intraday corrective slide finds support near 200-hour SMA/23.6% Fibo. confluence region

   “¢   The cross built on the previous session’s sharp recovery from support marked by the lower end of a short-term ascending trend-channel formation on the daily chart and continued gaining positive traction for the second consecutive session on Tuesday.

   “¢   The cross jumped to over one-week tops during the Asian trading session, albeit now seems to have run out of steam and slipped back below the 147.00 handle following the release of the latest UK macroeconomic data.

GBP/JPY daily chart

   “¢   Highly overbought conditions on the 1-hourly chart seemed to be the only factor prompting some profit-taking, especially after the upsurge of over 400-pips and ahead of a meaningful vote on the Brexit deal in the UK Parliament.

   “¢   The intraday corrective slide, however, managed to find some support near the 146.80 confluence support – comprising of 200-hour SMA and 23.6% Fibo. level of the 143.72-147.78 up-move witnessed over the past 24-hours.

1-hourly chart

   “¢   Hence, it would be prudent to wait for a strong follow-through selling before confirming that the cross might have actually topped out in the near-term and positioning for a further slide towards 38.% Fibo. level support, around the 146.25 region.

Technical levels to watch