GBPJPY is posting a bearish correction after the 11% gain and the rebound off the 26-month low of 148.80. Currently, the price is testing the 20- and 50-day simple moving averages (SMAs) and slightly lower the 200-day SMA is acting as significant support. The RSI is consolidating near the 50 level, while the MACD is standing near the zero level. Â Â
To the downside, immediate support could come from the 200-day SMA at 160.50 before diving towards the 152.60 barrier. The next hurdles could come at the 150.95 and the 26-month trough of 148.80.
Otherwise, if buyers push above the moving averages, initial resistance could come from the 165.70 barrier ahead of the 167.50 line. Climbing higher, the more-than-six-year high of 168.65 could interrupt the test of a key region of 175.00, reached in April 2015.
Summarizing, the very short-term bias has turned bearish but if the price shifts above the 165.70 mark, and especially beyond 168.65 the picture could turn positive.
