• GBP/JPY keeps recovery moves from intraday low amid Brexit hopes, risk-off mood.
  • One-month-old horizontal support can probe short-term bears.
  • UK inflation data likely to improve YoY, disappoint on MoM in October.

GBP/JPY extends corrective pullback from 137.85 to around 138.08 during the pre-London open trading on Wednesday. While hopes of a Brexit deal favor the pair buyers, cautious sentiment ahead of the UK CPI for October and the coronavirus (COVID-19) woes probe the immediate upside momentum.

Also challenging the GBP/JPY bulls is a falling trend line from November 11, at 138.05 now, as well as bearish MACD signals.

Considering the expected weakness in the British CPI on MoM, mainly due to the national lockdown, coupled with the pair’s inability to cross the immediate resistance line, GBP/JPY sellers stay directed towards revisiting an area including late-October high and the last week’s low near 137.55/65.

Read: When are the UK CPIs and how could they affect GBP/USD?

During the quote’s extended weakness past-137.55, an upward sloping trend line from October 30, currently around 136.65, will gain the market attention.

Meanwhile, a clear upside break of the immediate resistance line will escalate the latest recovery moves toward the 139.00 round-figure. However, the 140.00 psychological magnet and the monthly peak surrounding 140.30 can challenge the GBP/JPY bulls then after.

GBP/JPY four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price 138.04
Today Daily Change -0.04
Today Daily Change % -0.03%
Today daily open 138.08
 
Trends
Daily SMA20 136.95
Daily SMA50 136.4
Daily SMA100 137.02
Daily SMA200 135.82
 
Levels
Previous Daily High 138.36
Previous Daily Low 137.82
Previous Weekly High 140.32
Previous Weekly Low 135.77
Previous Monthly High 137.86
Previous Monthly Low 134.41
Daily Fibonacci 38.2% 138.15
Daily Fibonacci 61.8% 138.02
Daily Pivot Point S1 137.81
Daily Pivot Point S2 137.54
Daily Pivot Point S3 137.27
Daily Pivot Point R1 138.36
Daily Pivot Point R2 138.63
Daily Pivot Point R3 138.9

 

 

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