GBPJPY has found a strong resistance obstacle near the 38.2% Fibonacci retracement level of the up leg from 124.00 to 139.80 at 133.70, where the 20- and 100-day simple moving averages (SMAs) reside too.

The recent rebound on the short-term ascending trend line drove the stochastic oscillator towards overbought conditions, suggesting a possible pullback in the market, however, the RSI is flattening near the 50-neutral threshold.

To the upside, emanating pressure over the last couple of days has denied upside moves. If buyers manage to jump above the SMAs, a revisit of the 136.00 handle, which is the 23.6% Fibo, could unfold. Overcoming these constrictions could see resistance at the 200-day SMA at 137.43 and another leg-up could tackle the 15-week high of 139.80.

- advertisement -

Otherwise, if sellers drive the pair below the rising trend line, the 50.0% Fibo of 131.70 could interrupt the pair ahead of the 130.00 round number, which is the 61.8% Fibo. Should it fail to do so, the 129.30 support could halt downside movements before the price sinks towards the 127.27 barrier.

Summarizing, initially the confines of the 20- and 100-day SMAs would need to be breached to revive the bullish momentum. Yet, the short-to-medium term picture remains bullish and a break above 145.00 would be required to set the clear bullish tendency in the longer timeframe.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.