GBP/JPY Price Analysis: Corrective pullback battles previous support above 166.00

GBP/JPY consolidates the biggest intraday losses in a week following the recent bounce.
Weekly support-turned-resistance, short-term horizontal hurdle test recovery moves.
Bearish MACD signals, downbeat RSI (14) hints keep sellers hopeful.
Three-day-old resistance line adds to the upside filters, 100-SMA lures bears.

Anil Panchal FXStreet

GBP/JPY picks up bids to pare intraday losses around 166.15-20 during Thursday morning in Europe. In doing so, the cross-currency pair jostles with the previous support line stretched from Tuesday.

Multiple supports surrounding 165.70-60 seem to have underpinned the quote’s latest rebound. However, a horizontal area including levels since June 13 and the support-turned-resistance line from Monday challenges the buyers around 166.20-30.

Also challenging the GBP/JPY buyers is the bearish MACD signals and the steady RSI.

It’s worth noting that even if the pair manages to cross the 166.30 hurdle, a downward sloping resistance line from Tuesday will challenge the upside momentum around 167.25.

Meanwhile, a clear downside break of the 165.60 could trigger a fresh fall targeting the 100-SMA level near 165.00.

Following that, the 50% Fibonacci retracement of June 09-16, near 164.40, will be important to watch as a break of which could direct GBP/JPY sellers towards the 200-SMA level of 162.35.

Overall, GBP/JPY is likely to consolidate the weekly gains despite the recent rebound.

GBP/JPY: Four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	166.26
Today Daily Change	-0.92
Today Daily Change %	-0.55%
Today daily open	167.18

Trends
Daily SMA20	164.24
Daily SMA50	162.82
Daily SMA100	160.04
Daily SMA200	156.8

Levels
Previous Daily High	167.86
Previous Daily Low	165.77
Previous Weekly High	166.22
Previous Weekly Low	160
Previous Monthly High	163.91
Previous Monthly Low	155.6
Daily Fibonacci 38.2%	166.57
Daily Fibonacci 61.8%	167.06
Daily Pivot Point S1	166.02
Daily Pivot Point S2	164.85
Daily Pivot Point S3	163.93
Daily Pivot Point R1	168.11
Daily Pivot Point R2	169.03
Daily Pivot Point R3	170.2

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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