GBP/JPY Price Analysis: Bulls face rejection near 156.00 mark

GBP/JPY remains muted in the early European session.
Cross faces resistance barrier in downward channel.
MACD throws caution for aggressive buying bids.

Rekha Chauhan Independent Analyst

GBP/JPY posts modest gains on Tuesday in the initial European trading hours. The cross moves in a very narrow trade band with no meaningful traction.

At the time of writing, GBP/JPY trades at 155.77, up 0.08% for the day.

GBP/JPY 4-hour chart

On the 4-hour chart, the GBP/JPY cross-currency pair has been consolidating near the upper downward sloping line of the channel. The bullish flag formation justified the rise in price from the lows of 153.85 on May 27. However, now the GBP/JPY price fluctuates inside the descending channel.

If price breaks and sustained below the session’s low, then it could be further corrected up to the 20-hour Simple Moving Average (SMA) at 155.60 .

The receding Moving Average Convergence Divergence (MACD) indicator offers potential for more downside toward the 155.40 horizontal support level followed by another support area at the 155.00 horizontal support level.

Alternatively, if price breaks the downward trendline of the channel, then it could continue with its prevailing upside trend. The first area of attack for GBP/JPY bulls would be the May 28 high at 156.05.

The price action would then target the levels last seen in 2016. The first on GBP/JPY bull's radar would be February 2018 high at 156.61 followed by June 2016 high at 160.67.

GBP/JPY Additional Levels

GBP/JPY

Overview
Today last price	155.75
Today Daily Change	0.01
Today Daily Change %	0.01
Today daily open	155.74

Trends
Daily SMA20	153.89
Daily SMA50	152.11
Daily SMA100	149.27
Daily SMA200	143.68

Levels
Previous Daily High	155.94
Previous Daily Low	155.3
Previous Weekly High	156.08
Previous Weekly Low	153.77
Previous Monthly High	156.08
Previous Monthly Low	150.93
Daily Fibonacci 38.2%	155.55
Daily Fibonacci 61.8%	155.7
Daily Pivot Point S1	155.38
Daily Pivot Point S2	155.02
Daily Pivot Point S3	154.74
Daily Pivot Point R1	156.02
Daily Pivot Point R2	156.3
Daily Pivot Point R3	156.66

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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