BUY GBPJPY after UK Inflation data 200 EMA and Volume Clusters

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GBPJPY reversed after UK inflation data earlier , however it has retraced to significant 200 EMA level and areas of previous good volume / reversal points ( see chart )

Given also that :

200 Hourly EMA providing technical resistance
Running into a cluster of previous volume areas
Overall recent trend is still bullish

Despite the data this morning giving GBP a push lower , this move appears way too aggressive for the data and likely more position covering than fundamental given that :

Bank of England still expect inflation to peak at 3.75% in Q3
Energy , Tariffs and general uncertainty in the market
Some analysts still calling for 4% in April and May

Stop 192.85
Entry 193.80
Target 194.85

Good risk reward 1:1 good reversal probability given the above observations .

Possible retrace as US markets arrive but overall sentiment remains .





Feragatname

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