GBPJPY recently pulled back from its 16-year peak of 208.10, marking its lowest level since May 16. The pair has been on an uptrend since early 2024, but has been undergoing a correction since reaching its recent high. The price has broken below the supportive trendline from January and the 50-day simple moving average, indicating potential downward pressure.
Support and Resistance Levels
If the bears manage to push the price lower, they will need to surpass the June low of 197.18, followed by the two-month bottom of 195.84. Further downside could see the pair testing the March resistance of 193.52, with potential support at the psychological level of 190.00. On the other hand, if the price moves higher, it could face resistance at the April peak of 200.50, before targeting 202.08 and the July resistance of 205.77. A break above this level could pave the way for a retest of the 16-year high at 208.10.
GBPJPY is currently undergoing a correction from its recent multi-year high, with the breach of the ascending trendline casting a shadow over the technical outlook. While the bears should be cautious of the overbought conditions signaled by short-term oscillators, the price action suggests that the pair may continue to face resistance as it seeks to establish a new direction.