GBP/JPY Price Analysis: Bulls need validation from 168.00 key hurdle
- GBP/JPY renews seven-week high, struggles to extend upside momentum during the eighth positive day.
- Overbought RSI, horizontal area from late April challenge buyers.
- Bears have multiple hurdles before retaking controls, 161.30 appears the key support.
GBP/JPY dribbles around the highest levels in seven weeks, grinds higher near 167.35-40 by the press time, as bulls struggle to keep reins amid overbought RSI conditions.
Also challenging the GBP/JPY pair’s upside is the horizontal area comprising multiple tops marked during late April, around 168.00.
Even if the quote manages to rise past 168.00, February 2016 peak surrounding 175.00 could challenge the pair buyers.
On the contrary, pullback moves remain elusive until the quote drops below 161.30 support confluence, comprising 200-SMA and monthly support line.
However, the weekly ascending trend line and the previous resistance line from May 24, respectively around 166.60 and 165.00, could offer an intermediate halt during the anticipated fall.
Overall, GBP/JPY is likely to witness a pullback towards short-term support lines but the trend reversal isn’t brewing.
GBP/JPY: Four-hour chart
Trend: Pullback expected
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.
