GBP/JPY is expected to trade with a bullish bias above 145.40. The pair is posting a consolidation and remains above its horizontal support at 145.40. And the relative strength index lacks downward momentum. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as 145.40 is not broken down, further bounce is preferred with 146.30 and 146.65 as targets.
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 146.30 and the second one at 146.65. In the alternative scenario, short positions are recommended with the first target at 145.05 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 144.65. The pivot point lies at 145.40.
Resistance levels: 146.30, 146.65, 147.25
Support levels: 145.05, 144.65, 144.15
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