GBPJPY is moving mostly sideways and recently found some ground on the 150.96 level which is the 23.6% Fibonacci retracement of the bullish leg from 134.39 to 156, 06. The flattening of the 50 and 100 day simple moving averages (SMA) conveys a lack of clear price direction, while the booming 200 day SMA defends the positive structure.

Additionally, Ichimoku lines do not indicate a compelling price preference, while short-term oscillators also reflect mixed signals in directional dynamics. The red trigger line has merged with the zero threshold, and the MACD is only just below, while the upward pointing RSI has managed to move back slightly above its neutral mark of 50. The% stochastic line K bounced off the oversold level of 20 and crossed the% D line, signaling a minor increase in positive forces.

Currently, buyers are facing upward limitations from the 50 day SMA at 151.63 to the upper surface of the Ichimoku Cloud just below the barrier of 152.00. Breaking through the cloud, the next barrier to hamper the pair’s climb is the 100-day SMA at 152.83. Then looms the 153.30-154.06 borderline, which buyers should conquer to fuel additional bullish momentum to challenge the resistance zone between the 155.14 and 155.47 highs reached in the second. half of June.

If gains are held back and sellers resurface, initial support could start at 23.6% Fibo of 150.96. Moving below the handle of 151.00, bears can target the 200-day SMA at 149.69 and the adjacent support foundation of 148.51-149.41, which has backed up the positive structure since March 24. . From there, if that critical base gave way, a nearby barricade of 148.10 to 147.39, which encompasses the 38.2% Fibo and the 147.95 region, a peak from December 2019, could call into question the power of negative pressures.

In summary, the GBPJPY is showing a slight upward tilt. Its neutral to bullish tone remains intact above the 23.6% Fibo of 150.96 and the 200-day SMA. A clearer direction could form with a breakout below 148.45 or above 154.06.


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Al Worden

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