GBPJPY Price Swings Higher at Month-End to Mid 135.00 Level As Brexit Uncertainties Kept Bulls on the Defensive

GBPJPY Price Analysis – November 1

The GBPJPY price managed to swing higher at month-end lows and was last seen trading with modest gains, just to mid 135.00 psychological marks. Tomorrow is the 1st trading day in November, and the pound has been struggling over the last few days into the month-end. The rapid pace of growth in COVID-19 cases and persistent Brexit uncertainties kept bulls on the defensive.

Key Levels
Resistance Levels: 144.95, 138.38, 136.62
Support Levels: 133.04, 131.75, 129.29
GBPJPY Long term Trend: Ranging
GBPJPY managed to bounce about 40-50 pips from monthly lows and last time traded with modest gains, just above the psychological 135.00 marks. This move could disrupt mid-term bearish pressure and confirm the onset of a rebound, initially suspected of being a pullback on a broken ascending trendline.

At the start of the trading day, the pound sterling broke through the support line, turning towards the resistance line at 135.38, but limited by the moving average 5. Traders should be warned that this could be a false break and could return below the ascending trendline. However, a solid breakout of 137.84 would raise the likelihood of a long-term bullish reversal.
GBPJPY Short term Trend: Ranging
GBPJPY fell to 134.40 last week but recovered quickly. The initial bias is neutral this week. As long as the resistance level of 137.84 holds, the further decline may be anticipated. Beneath the level of 134.40 may initially aim the support level of 133.04. Its breach would resume a steeper decline from 142.71 to 61.8%, a pullback of 123.99 to 142.71 at 131.75 levels.

The RSI is also gaining momentum for 4 hours, while the red 5 moving average should cross the 13 blue moving average, reflecting the growing caution in the market. A close beneath the 135.00 horizontal support and more importantly beneath the prior low of 134.40 could trigger a new bearish extension towards 133.04.

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