On Wednesday, the GBP/JPY currency exchange rate shortly fluctuated below the lower trend line of the large scale channel down pattern, which has guided the rate since mid-October. However, eventually the rate recovered and by the start of Thursday’s European trading, the rate had reached above the 150.50 mark and the 50-hour simple moving average.
A continuation of the surge is most likely going to test the resistance of the 151.50 level and the zone above it. If the GBP/JPY breaks this resistance zone, the 152.00 level and the weekly simple pivot point at 152.08 might stop the surge.
In the meantime, a decline of the rate is expected to look for support in the 150.50 mark and the 50-hour simple moving average. Below these levels, the lower trend line of the channel down pattern is located at. In addition, take into account that the pair ignores the weekly S1 simple pivot point at 149.93.
