GBP/JPY technical analysis: Struggles between 7-month-old trendline, 200-day SMA

GBP/JPY steps back from the late-May top, downward sloping resistance line since mid-March.
Sellers await downside break of 200-day SMA amid overbought RSI conditions.

Anil Panchal FXStreet

In addition to the failure to rise beyond multi-month old falling trend line, overbought conditions of 14-bar Relative Strength Index (RSI) also trigger the GBP/JPY pair’s pullback to 138.87 during Wednesday’s Asian session.

Sellers await the downside break of the 200-day Simple Moving Average (SMA) level of 138.72 to enter while targeting July month high of 137.80.

However, pair’s declines below 137.80 might not refrain from challenging 135.65/75 area including tops marked in late-July and September.

On the upside, pair’s sustained trading beyond a downward sloping trend line since mid-March, at 139.30, could escalate the run-up to 140.00 and 61.8% Fibonacci retracement of the downside since March month, at 140.35.

During the pair’s further rise above 140.35, late-May tops nearing 141.80 will be on the bulls’ radar.

GBP/JPY daily chart

Trend: pullback expected

additional important levels

Overview
Today last price	138.83
Today Daily Change	2.16
Today Daily Change %	1.58%
Today daily open	136.67

Trends
Daily SMA20	133.43
Daily SMA50	131.42
Daily SMA100	133.54
Daily SMA200	138.72

Levels
Previous Daily High	137.18
Previous Daily Low	135.5
Previous Weekly High	137.9
Previous Weekly Low	130.42
Previous Monthly High	135.75
Previous Monthly Low	126.67
Daily Fibonacci 38.2%	136.14
Daily Fibonacci 61.8%	136.54
Daily Pivot Point S1	135.72
Daily Pivot Point S2	134.77
Daily Pivot Point S3	134.04
Daily Pivot Point R1	137.4
Daily Pivot Point R2	138.13
Daily Pivot Point R3	139.08

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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