21-DMA probes bulls at monthly top, BOE in focus

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  • GBP / JPY is hovering around a two week high, recently rebounding from an intraday low.
  • October’s descending resistance line 200-DMA also challenges the bullish momentum.
  • Stable RSI favors buyers, five-month support line limits the decline.

GBP / JPY pauses on two-day uptrend, advancing beyond 151.00 early in the European morning on Thursday.

Even though the 21-DMA shields the short term GBP / JPY rise around the monthly peak, the stable RSI gives buyers hope to overcome resistance near 151.40.

GBP / JPY buyers are also testing the 61.8% Fibonacci (Fibo.) Retracement level for July-October and 200-DMA, around 152.20 and 152.55, respectively.

In an event that GBP / JPY prices rise above 152.55, 50% Fibo. near 153.40 should attract the pair of bulls.

Alternatively, pullbacks may initially target the psychological magnet of 150.00, a breakout of which will point GBP / JPY sellers towards an ascending support line from July, near 149.55.

During the price weakness above 149.55, the annual low around 148.45 will be crucial to watch.

Overall, GBP / JPY traders consolidate their weekly gains ahead of the key Bank of England (BOE) monetary policy meeting.

Read: BOE Snapshot: Omicron Removes Chances Of Rate Hike, A Critical Voting Pattern For The GBP / USD Backlash

GBP / JPY: Daily chart

Trend: expected withdrawal

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