GBP/JPY is expected to trade with bullish bias. The pair is rebounding and has posted higher tops and lows, confirming an intraday trend reversal. The previous resistance at 194.10 should now play a key resistance role. And the descending 50-period intraday MA also maintains a bullish bias. The first target to the upside is therefore set at the horizontal resistance and overlap at 195.50. A break above this level would open the way to further strength towards 196.05 in extension.
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 195.50 and the second target at 196.05. In the alternative scenario, short positions are recommended with the first target at 193.70 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 193. The pivot point is at 194.10.
Resistance levels: 195.05 196.05 196.75
Support levels: 193.70 193 192.15