Downside movements are expected to dominate the GBP/JPY pair dynamic. The pair has been capped by its descending 50-period moving average and remains under pressure. Meanwhile, the relative strength index lacks strong upward momentum. As long as 137.210 holds as the key resistance, a break below 133.85 is possible.
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 133.85. A break below this target will move the pair further downwards to 133. The pivot point stands at 137.10. If 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 137.95 and the second one at 138.75.
Resistance levels: 137.95, 138.75, 139.50
Support levels: 133.85, 133, 132
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