Below the 100-SMA, a 13-day-old resistance line, GBP/JPY stays defensive.
Buyers are optimistic due to an upbeat Momentum line and prolonged trading beyond short-term support.
During a quiet Asian session on Tuesday, the GBP/JPY is defending 153.00, trading around 153.20-25 around press time. As a result, the cross-currency pair is struggling to prolong last week’s rebound, which has seen it fall below the 100-SMA and a downward sloping trend line dating back to June 24.
However, the pair’s successful trading above an ascending support line from Thursday, as well as a firmer Momentum line, keep buyers hopeful.
To tighten the grips and target the monthly high around 154.10, GBP/JPY bulls are looking for a clear upside break of the immediate SMA hurdle, at 153.35, as well as the stated resistance line near 153.45.
Following that, the mid-May high near 154.85 and the 155.00 level will be key to monitor.
Pullback moves, on the other hand, will be less concerning unless they stay above the immediate support line, which is about 152.70, and a breach of which will return the 152.30 and 151.00 support levels to the chart.
If sellers hold the reins on the GBP/JPY below 151.00, the monthly low near 150.65, followed by the psychological magnet of 150.00, will be critical.
Recovery is predicted to continue./n
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