GBP/JPY Price Analysis: Indecisive below 154.00 ahead of UK GDP

GBP/JPY hangs around multi-month top, recently bouncing off intraday low.
Tuesday Doji suggests trend reversal, battles bullish MACD, ascending channel.
21-day, 50-day SMA confluence adds to the downside filters.
Bulls can target 2018 yearly top on upside surprise.

Anil Panchal FXStreet

GBP/JPY picks up bids around 153.65-70 but fails to regain upside traction during early Wednesday. The pair printed a Doji candlestick on the daily chart the previous day, suggesting a pullback, but bullish MACD tests the sellers ahead of the key UK data.

Read: UK GDP Preview: Contraction to trigger correction? Sterling set for a reality check

Hence, GBP/JPY traders should wait for either a clear break above 154.00, the highest since February 2018, or a sustained downside below April’s top surrounding 153.40.

Given the anticipated disappointment from the British data, GBP/JPY may justify Tuesday’s Doji to revisit the April-end top near 152.40. However, the quote’s further downside will be challenged by a convergence of 21-day and 50-day SMA near 151.20-35.

Even if the pair drops below 151.20, it needs to defy an 11-week-old rising channel bullish formation with a breakdown of 150.50 level to convince GBP/JPY bears.

On the flip side, a successful run-up beyond the 154.00 threshold, will attack the stated channel’s resistance line around 155.00 ahead of targeting the year 2018 tops close to 156.60.

GBP/JPY daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	153.66
Today Daily Change	0.02
Today Daily Change %	0.01%
Today daily open	153.64

Trends
Daily SMA20	151.24
Daily SMA50	151.11
Daily SMA100	147.29
Daily SMA200	142.59

Levels
Previous Daily High	153.97
Previous Daily Low	153.15
Previous Weekly High	152.24
Previous Weekly Low	150.93
Previous Monthly High	153.42
Previous Monthly Low	149.06
Daily Fibonacci 38.2%	153.46
Daily Fibonacci 61.8%	153.65
Daily Pivot Point S1	153.2
Daily Pivot Point S2	152.77
Daily Pivot Point S3	152.39
Daily Pivot Point R1	154.02
Daily Pivot Point R2	154.4
Daily Pivot Point R3	154.84

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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