GBPJPY Extends Recovery From 137.84 Support Level Amid Brexit Hopes

GBPJPY Price Analysis – November 18

GBPJPY extends recovery from 137.84 level to around 138.05 level during the European session on Wednesday. Although the GBPJPY buyers’ anticipation of a Brexit deal, cautious sentiment ahead of October’s UK CPI, and the coronavirus (COVID-19) woes push for the immediate upside momentum.

Key levels
Resistance Levels: 144.95, 142.71, 140.31
Support Levels: 137.50, 134.40, 131.75
GBPJPY Long term Trend: Ranging
The technical context of the GBPJPY trade looks extremely well-positioned for another push higher into the mid 138.00 level. The 138 level was a major resistance level on the way up from the 134.00 level and now that it has broken the 138 level we expect this to act as a strong support zone.

In the long term, an increase from the 123.99 level is seen only as a rising phase of the sideway consolidation trend from the 122.75 (low) level. As long as the 147.95 resistance level holds, an eventual downside breakout remains in favor. However, a firm break of the 147.95 level will raise the chance of long term bullish reversal.
GBPJPY Short term Trend: Ranging
No change in GBPJPY’s outlook and intraday bias stays in a range. On the upside, a break of 140.31 level will resume the rebound from 133.04 level to retest 142.71 high level. Nevertheless, a sustained break of 137.84 resistance turned support level will argue that the rebound has been completed.

Intraday bias will be turned back to the downside for 133.04/134.40 support zone. GBPJPY sellers stay directed towards revisiting prior lows, meanwhile, a clear upside break of the immediate resistance line will escalate the latest recovery moves toward the 139.74 levels.

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