GBP/JPY picks up bids to pare intraday losses around 166.15-20 during Thursday morning in Europe. In doing so, the cross-currency pair jostles with the previous support line stretched from Tuesday.
Multiple supports surrounding 165.70-60 seem to have underpinned the quote’s latest rebound. However, a horizontal area including levels since June 13 and the support-turned-resistance line from Monday challenges the buyers around 166.20-30.
Also challenging the GBP/JPY buyers is the bearish MACD signals and the steady RSI.
It’s worth noting that even if the pair manages to cross the 166.30 hurdle, a downward sloping resistance line from Tuesday will challenge the upside momentum around 167.25.
Meanwhile, a clear downside break of the 165.60 could trigger a fresh fall targeting the 100-SMA level near 165.00.
Following that, the 50% Fibonacci retracement of June 09-16, near 164.40, will be important to watch as a break of which could direct GBP/JPY sellers towards the 200-SMA level of 162.35.
Overall, GBP/JPY is likely to consolidate the weekly gains despite the recent rebound.
Trend: Further weakness expected
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