GBP/JPY Price Analysis: Fades bounce off 61.8% Fibonacci retracement
- GBP/JPY steps back from weekly resistance line to trim intraday gains.
- Downbeat Momentum line hints at corrective pullback towards monthly horizontal line.
- Bears need to conquer the 150.00 threhold for conviction.
GBP/JPY struggles to keep the rebound from the monthly bottom around 150.70, up 0.09% intraday, ahead of Wednesday’s London open.
The cross-currency pair dropped to the lowest since July 30 the previous day before bouncing off 61.8% Fibonacci retracement of late July upswing.
The pair’s rebound gains extra support from the downbeat Momentum line amid the pair’s one-week-old south-run.
However, a clear upside break of a short-term resistance line, near 150.85, becomes necessary for the GBP/JPY buyers to sneak in. Following that, a horizontal area around 151.30-35, comprising multiple levels marked since July 19, will challenge the quote’s further advances.
Alternatively, a clear downtrend below the 61.8% Fibonacci retracement level of 150.37 won’t be enough for the GBP/JPY bears to keep the reins as the 150.00 round figure may test the further declines.
In a case where the GBP/JPY remains weak past 150.00, July’s bottom surrounding 148.45 will be in focus.
GBP/JPY: Four-hour chart
Trend: Recover moves 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.
