GBP/JPY is under pressure. The pair remains under pressure below its horizontal resistance at 127.80, and is trading around the 20- and 50-period moving averages. Meanwhile, the relative strength index stays below 50 and lacks upward momentum. As long as 127.80 holds as the key resistance, the risk of a break below 125.90 remains high.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 125.90. A break below this target will move the pair further downwards to 124.80. The pivot point stands at 127.80. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 128.70 and the second one at 130.00.
Resistance levels: 128.70, 130.00, 131.00
Support levels: 125.90, 124.80, 123.40
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