GBP/JPY Price Analysis: 21-day SMA probes week-start gap-up on Brexit optimism

GBP/JPY begins the week with an upside gap over 130 pips.
EU, UK agrees to “go the extra mile” by continuing talks into this week.
One-week-old resistance line adds to the upside barrier.

Anil Panchal FXStreet

GBP/JPY kick-starts the week’s trading with the gap-up to 139.00, currently around 138.53, during the early Monday in Asia. The pair recently benefited from the news that European Commission (EC) President Ursula von der Leyen and UK PM Boris Johnson agreed to extend Brexit talks to this week after conveying their “far apart” status the previous day.

Read: Brexit “still has some legs”, US bipartisan group devides stimulus into two packages

While the upbeat news triggered the quote’s U-turn from 50-day and 100-day SMA, it is yet to cross 21-day SMA, needless to mention the falling trend line from December 04.

With the MACD signals staying red despite the recent uptick in GBP/JPY prices, bulls are less likely to keep the helm unless posting a daily closing beyond 21-day SMA, currently around 138.95.

Also challenging the GBP/JPY bulls that target to refresh the monthly high of 140.70 is a short-term resistance line, at 139.80 now.

On the contrary, a daily closing below 50-day and 100-day SMA confluence near 137.80/70 will direct the GBP/JPY sellers towards October’s low around 134.40.

Though, Friday’s bottom surrounding 136.80 will challenge the bears during the stated south-run.

GBP/JPY daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	138.68
Today Daily Change	1.06
Today Daily Change %	0.77%
Today daily open	137.62

Trends
Daily SMA20	138.93
Daily SMA50	137.66
Daily SMA100	137.75
Daily SMA200	135.6

Levels
Previous Daily High	138.76
Previous Daily Low	136.79
Previous Weekly High	140.34
Previous Weekly Low	136.79
Previous Monthly High	140.32
Previous Monthly Low	134.87
Daily Fibonacci 38.2%	137.54
Daily Fibonacci 61.8%	138.01
Daily Pivot Point S1	136.68
Daily Pivot Point S2	135.76
Daily Pivot Point S3	134.72
Daily Pivot Point R1	138.65
Daily Pivot Point R2	139.69
Daily Pivot Point R3	140.62

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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