GBPJPY Rallies From Lows of 135.66 Level, Stays Mildly Offered

GBPJPY Price Analysis – October 14

The GBPJPY cross reversed an early European session slide to lows of 135.66 level and rally to daily highs, around the 136.74 regions in the last hour, albeit lacked follow-through. The British pound was pressured by concerns about new coronavirus restrictions and the possibility that the Bank of England could introduce negative interest rates.

Key Levels
Resistance Levels: 147.95, 142.71, 137.84
Support Levels: 135.74, 133.04, 131.75
GBPJPY Long term Trend: Ranging
The cross extended this week’s retracement slide from one-month highs, around the 137.80-85 region, and remained depressed through the first half of the trading action on Wednesday. In a scenario where the GBPJPY sellers dominate 136.62 levels, the recent low of 135.66 level and the September bottom surrounding 133.04 level may return to the charts.

With the RSI not near the overbought/oversold conditions, the continuation of a current downside can’t be ruled out. Alternatively, an upside clearance of 137.00 immediate resistance zone marked by the moving average 5 may propel the pair towards the prior upside horizontal line at 137.84 level.
GBPJPY Short term Trend: Ranging
On the 4-hour time frame, the British Pound struggled to gain momentum above the 136.62 support turned resistance zone against the Yen. The GBPJPY pair started a fresh advance and traded beyond the 4 hour MA 5.

The advance has gained pace beyond the 136.62 level and moving towards the moving average of 13 barriers. Summarizing, should the buying momentum manage to rescue the pair from further losses, the pair may consolidate in the short-term picture around the 38.2% Fibo.

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