The GBP/JPY currency pair closed unchanged at 215.17 on Tuesday, as buyers hesitated to challenge the 50-day simple moving average (SMA) positioned at 215.43. There’s an expectation that the first key resistance level, during the approach to an annual retest, could peak around 219.61.
GBP/JPY Price Forecast: Technical Outlook
Current price trends indicate that GBP/JPY encounters significant resistance, possibly restricting upward movements, which might lead to a range-bound trading environment. The Relative Strength Index (RSI) supports this view, having recently leveled off around the neutral mark of 50, signifying a lack of strong momentum from either buyers or sellers intent on pushing the price significantly in either direction.
Looking upward, the immediate resistance is represented by the 50-day SMA, with the subsequent level at 216.00. If this level is surpassed, it may lead to 216.50 and then the psychological barrier at 217.00.
On the downside, the first support level for GBP/JPY is around 215.00, followed closely by the 100-day SMA at 214.53. Below that, the 200-day SMA is at 217.05, and the daily low from August 7 stands at 211.47.
