GBP/JPY Price Analysis: Bullish impulse eyes double tops
|- GBP/JPY bulls take a breather after two-day uptrend.
- Firmer RSI backs sustained trading beyond monthly support line, 200-SMA to keep buyers hopeful.
GBP/JPY picks up bids inside an immediate trading range surrounding 157.00, following a pullback from the weekly high. That said, the quote remains sidelined after rising for the last two days.
However, the quote’s ability to bounce off an ascending support line from October 01 on Monday joins sturdy RSI and successful trading above 200-SMA to favor the bulls.
Hence, the latest peak around 157.70 is on the cards before the double tops near 158.20 challenge GBP/JPY upside.
It’s worth noting that a clear run-up past 158.20 will aim for the 160.00 psychological magnet with the late June 2016 peak of 159.21 acting as a buffer.
Meanwhile, a downside break of the immediate support line, near 156.85, will direct GBP/JPY sellers towards the 200-SMA level of 155.13.
In a case where the cross-currency remains weak past 155.13, October 12 swing low around 153.70 will be in focus.
GBP/JPY: Four-hour chart
Trend: Further upside expected
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