From a technical perspective, using a four hours chart price rebounded modestly from the lower horizontal trendline of a bearish wedge pattern formation extending from 19th May. A strong follow-through buying will be met by an immediate hurdle at the 161.00 round level which will act as a barricade against the pair. A subsequent move beyond the round level would validate the bullish outlook but will be met with the next barricade at the 50% bearish Fibonacci retracement level at 161.205 level which coincides with the upper horizontal trendline of the pattern.
The RSI(14) is ranging from 54.42- 55.07 indicating a bullish momentum but still far from the overbought territory. A Moving Average Cross Divergence(MACD) crossover later in the course of the day would add credence to the bullish filter.
On the flip side, a convincing break below the horizontal trendline would negate the bullish bias and prompt some technical selling. Acceptance below the 20 Exponential moving average(EMA) at 159.703 level will confirm a bearish bias and a subsequent follow-through selling will push the asset to the next relevant resistance level ranging from 157.411 - 157.877 level.
GBPJPY
The RSI(14) is ranging from 54.42- 55.07 indicating a bullish momentum but still far from the overbought territory. A Moving Average Cross Divergence(MACD) crossover later in the course of the day would add credence to the bullish filter.
On the flip side, a convincing break below the horizontal trendline would negate the bullish bias and prompt some technical selling. Acceptance below the 20 Exponential moving average(EMA) at 159.703 level will confirm a bearish bias and a subsequent follow-through selling will push the asset to the next relevant resistance level ranging from 157.411 - 157.877 level.
GBPJPY