GBP/JPY Price Analysis: Bounces off a double-bottom in the H1, targets 162.00

GBP/JPY daily chart shows the pair trading sideways due to the lack of fresh impetus.
Near-term, the hourly chart formed a double-bottom, targeting 162.00.

Christian Borjon Valencia FXStreet

The GBP/JPY extended its losses for the second straight day, stumbling below the 20-day EMA at 162.00, striking a new weekly low at 160.90. However, the British pound staged a recovery late in the session and trimmed earlier losses. The GBP/JPY is trading at 161.52, below its opening price as the Asian Pacific session begins.

GBP/JPY Price Analysis: Technical outlook

From a technical perspective, the GBP/JPY remains sideways. During the last 22 days, the cross-currency remains in the 159.44-162.84 range, unable to crack above/below it due to fundamental reasons linked to both currencies. The Relative Strength Index (RSI) paints a dull picture, trapped in the 38-49 reading, in bearish territory, directionless. Therefore, GBP/JPY intraday price action could be more entertaining.

Short term, the GBP/JPY one-hour chart illustrates the formation of a double-bottom on Wednesday, which targets the 162.00 mark. Nevertheless, the cross-currency pair would find crucial supply zones on its way north.

The GBP/JPY first resistance would be the 200-EMA at 161.71. Break above will expose the confluence of the 50 and 100-EMAs in the 161.75-76 area, followed by the R1 daily pivot at 161.96, ahead of the double-bottom’s target.

GBP/JPY Key Technical Levels

GBP/JPY

Overview
Today last price	161.52
Today Daily Change	-0.24
Today Daily Change %	-0.15
Today daily open	161.77

Trends
Daily SMA20	162.14
Daily SMA50	163.41
Daily SMA100	163.09
Daily SMA200	159.19

Levels
Previous Daily High	162.61
Previous Daily Low	161.5
Previous Weekly High	162.69
Previous Weekly Low	160.8
Previous Monthly High	166.34
Previous Monthly Low	160.4
Daily Fibonacci 38.2%	161.92
Daily Fibonacci 61.8%	162.19
Daily Pivot Point S1	161.31
Daily Pivot Point S2	160.84
Daily Pivot Point S3	160.19
Daily Pivot Point R1	162.42
Daily Pivot Point R2	163.07
Daily Pivot Point R3	163.54

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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