The GBP/JPY pair is consolidating on the upside but is still trading above its rising 50-period moving average, which plays a support role and maintains the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum. Additionally, 126.80 is playing a key support role, which should limit the downside potential. As long as 126.80 is support, look for a further upside with targets at 128.15 and 128.70 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. Therefore, long positions are recommended with the first target at 128.15 and the second one at 128.70. In the alternative scenario, short positions are recommended with the first target at 126.30 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 125.90. The pivot point lies at 126.80.
Resistance levels: 128.15, 128.70, 130.00
Support levels: 126.30, 125.90, 124.80
