For the past four sessions, the GBP/JPY has been consolidating near 153.60.
If price closes above the support-turned-resistance near 153.70, more gains are expected.
With a positive bias, momentum oscillators stay neutral.
In the first Asian session of the trading week, the GBP/JPY price edged upward. The currency pair began the day higher and proceeded to rise.
GBP/JPY is trading at 153.70 at the time of writing, up 0.07 percent on the day.
On the daily chart, the GBP/JPY pair rebounded from a low of 152.61 in the previous week after retreating from a high of 155.15 on June 23.
A prolonged break above 153.70, on the other hand, might increase buying pressure in the pair.
GBP/JPY would then test the initial upward target of 153.91, which is the 50-day Simple Moving Average (SMA).
With a bullish bias, the Moving Average Convergence Divergence (MACD) indicator trades slightly below the midline, indicating an oncoming higher price increase. Any increase in the MACD would trigger a new wave of buying chances.
Following that, traders will be looking for the June 28 high at 154.23, as well as the 155.50 horizontal resistance level.
If, on the other hand, price fails to retain intraday gains, it indicates that the pair is still weak, with immediate support at the 153.20 horizontal support level.
GBP/JPY bears are now attempting to take Friday’s low in the 153.00 region.
The possibility of the 152.70 horizontal support level occurring increases if the daily close falls below the 153.00 level./n
