- GBP / JPY has a bullish bias, but the current pullback is about to challenge key support.
- A break below 150.80 would negate the bullish bias in the near term.
The GBP/JPY it is moving on a slightly bullish bias, with momentum fading. The price is retreating after starting without being able to break the 151.60 zone. On Thursday it fell below the 151.15 support area and triggered an extension of the correction.
The cross is moving towards the 150.80 area which is a critical support containing the 21 SMA on the 4 hours chart, an uptrend line and it is also a horizontal support level. If GBP / JPY breaks below, the bullish bias in the short term would be reversed, leaving the pound vulnerable to further losses. The next support is at 150.35.
If the pound recovers levels above 151.20, it could regain momentum, but as long as it is below the intraday bias it should favor the downside. Upper resistance levels are seen at 151.60 and 152.00.
GBP / JPY 4-hour chart