Technical analysis

GBPJPY Wave Analysis – 23 February 2023

• GBPJPY reversed from key resistance level 163.00

• Likely to fall to support level 160.50

GBPJPY currency pair recently reversed down from the key resistance level 163.00 (former monthly low from November) coinciding with the upper daily Bollinger Band and the 50% Fibonacci correction of the downward impulse from November.

The downward reversal from the resistance level 163.00 stopped the previous impulse waves (iii) and 3, which belong to wave 3 from the start of January.

Given the overbought reading on the daily Stochastic, GBPJPY can be expected to fall further toward the next support level 160.50 (low of the previous minor wave (iv)).

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