GBP/JPY is expected to trade in a higher range as bias remains bullish. The pair stays above its key support at 184.60 and is moving sideways. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. Further upside is therefore expected with the next horizontal resistance and overlap set at 185.80 at first. A break above this level would call for further advance towards 186.45 in extension.
Trading recommendations:
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 185.80 and the second target at 185.80. In the alternative scenario, short positions are recommended with the first target at 184.05 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 183.60. The pivot point is at 184.60.
Resistance levels: 185.80 186.45 187.25
Support levels: 184.05 183.60 183
