In our last article, we looked at a confluent zone of Fibonacci resistance that was offering a near-term topping formation in GBP/JPY. And within 24 hours, both profit targets were cleared as a disappointing inflation report out of the UK sent prices spiraling lower as rate hike expectations were quickly diminished as the British economy became the most recent to go into ‘deflation.’ The two provided targets were at 182.50 (a major psychological level as well as a recent price action swing-low), and then 181.88 (the 50% Fibonacci retracement of the most recent major move in the pair, taking the October 2014 low to the 2015 high).


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