GBP/JPY Price Forecast: Bulls reclaim 50-day SMA, eye 217.00

The GBP/JPY cross-pair is poised to finish Monday’s session with gains of over 0.14% as traders prepare for the beginning of Tuesday’s Asian session. The cross-pair has climbed above the 50-day Simple Moving Average (SMA) at 215.52, often seen as a breakout that opens the door to further upside. The pair trades slightly below 216.00 at the time of writing.

GBP/JPY Price Forecast: Technical Outlook

The GBP/JPY refreshed a ten-day high of 216.16 but is failing to hold above 216.00. Nevertheless, momentum has shifted upward, as indicated by the Relative Strength Index (RSI). The RSI, although bullish, turned flat, an indication of further consolidation, before the next leg up forms.

If GBP/JPY rises above 216.00, expect a move towards a downward resistance trendline near 217.50/65. Above this area, up next is 217.00, followed by the July 9 high of the day (HOD) at 218.01.

Conversely, if GBP/JPY tumbles below the 50-day SMA, a move towards the 100-day SMA of 214.65 is on the cards. A breach of the latter will expose the 200-day SMA at 212.32.

GBP/JPY Price Chart – Daily