GBPJPY Rebounds From Weekly Lows to 135.08 Level Amid a Modest Pickup in GBP Demand

GBPJPY Price Analysis – July 15

The GBPJPY cross held on to its modest gains through the early European session into American session, albeit has retreated around 20 pips from 135.08 daily high level. On the other hand, the sterling benefitted from Wednesday’s hotter-than-expected UK consumer inflation figures boosting GBP demand.

Key Levels
Resistance Levels: 147.95, 139.74, 136.35
Support Levels: 133.79, 131.75,129.29
GBPJPY Long term Trend: Ranging
The GBPJPY developed from sub-134.00 level, or one-week lows, on the strong intraday bounce of the day before and obtained some follow-through traction on Wednesday. One of the main factors driving the GBPJPY cross higher has been seen as a heavy bid tone surrounding the British pound.

In the wider context, we see market behavior from a level of 122.75 (low) as a trend of consolidation horizontally. So long so resistance level 147.95 holds, there is a potential downside breakout in favor. A firm break of 147.95 would however lift the risk of a bullish long-term reversal.

GBPJPY Short term Trend: Ranging
GBPJPY recovers before a lower support level of 133.79 and intraday bias stay neutral initially. As long as there is a lower level of support of 133.79, more increase is slightly in favor. On the upside beyond level 135.76 may expand the recovery from level 131.75 to high level 139.74.

A breach of level 133.76, however, may indicate that the turnaround is over. Instead, the intraday bias is pulled back to the downside for a support level of 131.75.

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