- GBP/JPY bulls struggle to keep the reins after two-day uptrend.
- 10-DMA, 21-DMA and two-month-old resistance line challenge immediate upside amid sluggish MACD.
- Bears should wait for 61.8% Fibonacci retracement breakdown.
GBP/JPY makes rounds to 159.40 while fading the two-day uptrend during early Tuesday. In doing so, the cross-currency pair jostles with the 10-DMA hurdle amid a sluggish session, as portrayed by the indecisive MACD.
Even if the quote crosses the immediate DMA resistance surrounding 159.50, which is less expected due to the MACD conditions, the 21-DMA could challenge the GBP/JPY buyers around 159.90.
Following that, the 160.00 round figure and a downward-sloping resistance line from December 13, 2022, close to 160.15 by the press time, appear as the last defense for the GBP/JPY bears before giving control to the bulls.
In that case, the previous monthly high and late December swing top, respectively near 161.85 and 162.35, will be in focus.
On the flip side, the 61.8% Fibonacci retracement level of the cross-currency pair’s September-October 2022 upside, near 157.65, puts a floor under the GBP/JPY price.
Also acting as the key support is an upward-sloping support line from the last September, close to 156.85 by the press time.
Should the GBP/JPY price stays weaker past 156.85, the odds of witnessing a slump toward the previous monthly low near 155.35 can’t be ruled out.
GBP/JPY: Daily chart
Trend: Pullback expected