- GBPJPY slid below 50-day SMA last week after BoE’s unexpected decision to hold rates steady
- Found its feet at the lower end of the Ichimoku cloud and has been directionless since then
- Are the bulls ready to re-take charge?
GBPJPY had been stuck in a prolonged uptrend since January, posting an eight-year high of 186.75 on August 22. However, the pair has been experiencing a downside correction in the past month which has stalled for now as the short-term oscillators currently suggest that bullish pressures are slowly re-emerging.
Should the price march higher and reclaim its 50-day simple moving average (SMA), immediate resistance could be met at the July peak of 184.00. Piercing through that wall, the pair could revisit its eight-year high of 186.75. If that hurdle also fails, the price could ascend to fresh multi-year highs, where the 190.00 psychological mark might curb further advances.
On the flipside, if selling interest persists, the bears could attack the recent support of 180.72. Even lower, the July barrier of 179.45 could provide additional downside protection. Breaking below that level, the price might face the July bottom of 172.29.
In brief, GBPJPY has been undergoing a strong pullback, which appears to be fading. Nevertheless, the bulls should not get excited until the price conquers the 50-day SMA.
