| Resistance | Support |
|---|---|
| 181.41 | 178.85 |
| 184.58 | 176.29 |
| 186.53 | 173.12 |
The British Pound slumped to a two-month low against the Japanese Yen, with prices now eyeing support below the 179.00 figure. A daily close below the 50%Fibonacci retracement at 178.85 exposes the 61.8% level at 176.29. Alternatively a reversal above the 38.2% retracement at 181.41clears the way for a challenge of the 23.6% retracement at 184.58.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
