The GBP/JPY pair experienced a late climb during the North American session, extending its positive momentum fueled by an optimistic market sentiment, particularly reflected in Wall Street’s attainment of new all-time highs. As of the latest update, the cross-pair is trading at 187.44, marking a 0.48% increase.
Analyzing the daily chart reveals a discernible upward bias, with the GBP/JPY’s price action on February 1 forming a ‘hammer.’ This development has further intensified today’s rally, propelling the pair to a new two-day high of 187.73. Should buyers successfully propel the exchange rate beyond the 188.00 threshold, it may open the path towards challenging the January 19 high at 188.93 before approaching the critical level of 189.00.
Conversely, a downturn in GBP/JPY, particularly if it falls below the Tenkan-Sen at 187.06, could set the stage for a challenge to the 187.00 level. Once these levels are breached, the next potential support zones include the Senkou Span A at 185.44, followed by the February 1 low of 185.22. Further downside momentum may extend towards the psychological level of 185.00.
Traders and investors are advised to closely monitor these key technical levels as they navigate the dynamic movements of the GBP/JPY pair, keeping an eye on potential breakouts or retracements that could shape future market trends.