Pound day: weak downward

The GBP / JPY fluctuated around 165.044. The Bank of England was unable to balance inflation and economic growth difficulties, resulting in the recent weak performance of the GBP. The Bank of England was willing to accelerate the pace of interest rate hike, but at the same time it was worried that more decisive measures might further slow down the economy. This situation was something the British government did not want to see, especially in the face of various difficulties after brexit.

According to the 4-hour chart, the high level maintains a narrow amplitude fluctuation trend in the short term, and the amplitude space gradually narrows. After the Bollinger belt index shows a closing trend, it begins to slowly open its mouth. The MACD index hovers below the 0 axis, and the RSI index is arranged below the 50 equilibrium line;

Turning point of long and short: 165.413

Pressing position: 166.412, 166.852

Support position: 164.242, 163.571

Trading strategy: bearish below 165.413, target 164.242, 163.571

Alternative strategy: bullish above 165.413, target 166.412, 166.852