GBPJPY surged to a fresh six-week high of 165.70 earlier today, penetrating to the upside of the 163.55-163.85 area. The 20- and 200-period simple moving averages (SMAs) posted a bullish crossover, endorsing the strong bullish rally. The RSI indicator is rising in the overbought territory, while the MACD is strengthening the positive momentum above its trigger and zero lines.
More advances could take the market until the 166.20 barrier, reached on July 20 ahead of the next peak on June 22 at 167.80. If buyers claim that zone this time, 168.70 could be another strong obstacle to halt the upside pressures.
On the other hand, the pair may pull back to test the 163.55-163.85 support region. Falling lower, the 20-period SMA at 162.80 and the 162.50 mark, which moves near the 200-period SMA may act as a difficult territory to break.
Summarizing, the short- and medium-term outlooks are showing positive bias and only a drop beneath the 200-period SMA may switch the market to bearish.
