GBPJPY Lifts Higher Past 139.79 Level on Brexit Extension Agreement

GBPJPY Price Analysis – December 16

GBPJPY increases at the day’s start, up 0.08% intraday, as markets in the European session continues rev for Wednesday’s trading. The buying interest around the British pound picked up the pace and propelled the GBPJPY cross to two-day highs around the 139.79 regions. Britain and the European Union agreed to extend trade negotiations beyond Sunday’s deadline.

Key Levels
Resistance Levels: 147.95, 144.95, 140.31
Support Levels: 138.38, 137.50, 134.40
GBPJPY Long term Trend: Ranging
The GBPJPY pair has already rebounded from the weekly low of 138.38 to 139.79 levels as of today’s session and may lift further. Nonetheless, the horizontal resistance level currently around 139.74, followed by the 140.31 thresholds, challenges the GBPJPY bulls. However, bears are less likely to enter unless witnessing a clear breach beneath the moving average 13 around 139.00 level.

In the larger context, the increase from the 123.99 level is seen as an advancing phase of the sideway range trend from the 122.75 (low) level. As long as the 147.95 resistance level holds, an eventual downside breakout stays in consideration. Nevertheless, the eventual breach of 147.95 may increase the likelihood of long term bullish reversal.
GBPJPY Short term Trend: Ranging
The intraday bias in GBPJPY stays neutral for consolidations in the range of 136.79/140.70 levels. On the downside, the breach of 136.79 level may extend the trend from 142.71 level with a third phase. A steeper plunge would be seen to 134.40 support level next.

On the upside, a breach of the 140.70 level may invalidate this view and extend the rebound from the 133.04 level. With the repeated rebound from the strong supports, GBPJPY buyers may wait for validation of the channel breakout, with a sustained breach beyond the 139.74 level.

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