Pair Needs to Breach 147.96 Neckline to Move Further
The GBP/JPY pair has risen substantially since June, 2020. Compared to the major low of 124.09 hit a year ago, the pair has soared since by 26%. Now, GBP/JPY is about to test a major dropped-down resistance line drawn from 251.11, which was the peak reached in July 2007. The pair is expected to have a break before resuming its upward movement.
Analysts view the rise of GBP/JPY as boosted by a solid ascent over a crucial moving average marker at 144.04. The pair speeded up further by breaching over a 147.96 neckline. The upside is moving towards the 50% Fibonacci retracement of 195.88, which is the top reached in June 2015. This is also the more recent lows of 124.09 adjusting at 159.99.
The GBP/JPY pair should annihilate some short-term overbought heat when it slides from 156.07, with a cut below 154.76 to enable a further corrective decline. Below this level, there lies the kijun support of 153.45 on the daily Ichimoku charts, analysts explain.