- GBP/JPY extends Monday’s gains to refresh intraday high.
- Firmer RSI suggests additional upside, 200-SMA challenges the bulls.
- Sellers need validation from monthly low, early September’s highs.
GBP/JPY picks up bids to refresh intraday top near 154.00, up 0.18% on a day during early Tuesday.
That said, the cross-currency pair consolidated Friday’s heavy losses the previous day while the latest recovery moves challenge a downward sloping trend line from November 03.
Given the firmer RSI line, the pair buyers are likely to overcome the immediate hurdle around 154.10. However, the 200-SMA level of 154.90 will be a tough nut to crack for the GBP/JPY bulls afterward.
Even if the quote rises past 154.90, the 155.00 threshold and 61.8% Fibonacci retracement of October-November downside, around 156.00, will challenge additional upside.
On the flip side, pullback moves may retest the 153.00 round figure ahead of challenging the monthly low near 152.40.
Should GBP/JPY bears dominate past 152.40, multiple levels marked during early September around 152.20-25, followed by the 152.00 psychological magnet, will question the further downside.
GBP/JPY: Daily chart
Trend: Further recovery expected