GBP/JPY technical analysis: Breaks through 50-DMA, descending trend-line confluence hurdle

The recent Brexit optimism continues to underpin the GBP.
Upbeat UK data provides an additional boost on Monday.
Seems poised to extend the recent bounce from multi-year lows.

Haresh Menghani FXStreet

The British Pound strengthened across the board in reaction to upbeat UK macro data and lifted the GBP/JPY cross back beyond the 132.00 handle to fresh one-month tops. The intraday positive momentum further assisted the cross to make it through a confluence barrier, comprising of 50-day SMA and over one-month-old ascending trend-line.

Meanwhile, technical indicators on the daily chart have just started gaining positive traction and support prospects for an extension of the recent rally from multi-year lows. However, slightly overbought conditions on the 4-hourly chart might keep a lid on any subsequent up-move and thus, warrant some caution before placing aggressive bullish bets.

From current levels, immediate resistance is pegged near the 132.90-133.00 region, above which the cross is likely to accelerate the up-move towards reclaiming the 134.00 handle. On the flip side, any meaningful pullback below the mentioned confluence resistance breakpoint might now attract some dip-buying interest and help limit the further downside near the 131.00 mark.

GBP/JPY daily chart

GBP/JPY

Overview
Today last price	132.44
Today Daily Change	1.07
Today Daily Change %	0.81
Today daily open	131.37

Trends
Daily SMA20	129.34
Daily SMA50	131.85
Daily SMA100	135.93
Daily SMA200	139.74

Levels
Previous Daily High	132.13
Previous Daily Low	131.27
Previous Weekly High	132.19
Previous Weekly Low	126.67
Previous Monthly High	132.56
Previous Monthly Low	126.54
Daily Fibonacci 38.2%	131.6
Daily Fibonacci 61.8%	131.8
Daily Pivot Point S1	131.05
Daily Pivot Point S2	130.73
Daily Pivot Point S3	130.18
Daily Pivot Point R1	131.91
Daily Pivot Point R2	132.45
Daily Pivot Point R3	132.78

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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