The uncertainty due to the coronavirus pandemic continues to weigh on the financial markets. All assets are being sold except for cash - cash is king. However, all currencies are kings. The major safe-haven currencies USD, JPY, CHF, and EUR gets the benefit of the doubt and are racing higher. The corona pandemic is so rare an event, that it has the power to change otherwise solid counts and change the larger picture, which we have just seen for the GBPJPY cross. What looked like a safe bet - to buy GBP - has proved itself to be a wrong and the break below 126.52 blew-up the former bullish count and now points the arrow towards a drop closer to 123.02 the bottom in October 2016. If this low is broken too, the next downside target is seen near 116.85.
Resistance is now found in the 128.96 - 131.08 zone.
R3: 128.96
R2:127.89
R1: 126.42
Pivot: 126.00
S1: 124.75
S2: 123.95
S3: 123.02
Trading recommendation:
Our stop at 128.00 was hit and we will place ourself on the sideline for now.
