GBPJPY Price Analysis: Pullback remains elusive beyond 165.70
- GBPJPY remains sidelined around weekly top, struggles to justify monthly resistance break.
- Bearish MACD signals challenge buyers amid sluggish session.
- Resistance-turned-support, key DMAs restrict immediate downside.
GBPJPY treads water around 166.00 as traders await the UK’s Autumn Statement during early Thursday. In doing so, the cross-currency pair failed to justify the previous day’s upside break of a two-week-old descending trend line.
The quote’s failure to cheer the previous key resistance could be linked to the bearish MACD signals, as well as the cautious mood ahead of the key UK event.
Also read: GBPUSD aims to recapture 1.2000 ahead of UK Autumn Budget
That said, the GBPJPY buyers could witness a bumpy road during the further upside as the previous weekly top near 169.10 precedes the 170.00 psychological magnet and October 2022 high near 172.15 to challenge the pair’s further advances.
Meanwhile, pullback moves will initially have to remain below the previous resistance line stretched from October 31, around 165.70 by the press time.
Following that, the 100-DMA and the 200-DMA, respectively near 164.00 and 162.30, should challenge the GBPJPY buyers.
In a case where the pair remains bearish past 162.30, the October 11-12 swing low near 159.70 will be a tough nut to crack for the GBPJPY bears.
Overall, GBPJPY remains bullish even if the road to the north is bumpy and long.
GBPJPY: Daily chart
Trend: Further upside 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.
