Following a period of consolidation around 192.00 over the past three days, the GBP/JPY pair has now descended to the 191.00 handle. This downward movement comes in the wake of a flight to safe-haven assets triggered by heightened tensions in the Israel-Iran conflict, bolstering the Japanese Yen (JPY) at the expense of the Pound Sterling. As of the latest update, the cross has experienced a 0.56% decline and is currently trading at 191.19.
Technical Analysis: GBP/JPY Outlook
Despite slipping below key support levels such as the Tenkan and Kijun Sen, as well as the 50-day moving average (DMA), and reaching a daily low of 190.29, the GBP/JPY pair has demonstrated resilience by rebounding to its current exchange rates while remaining above the Ichimoku Cloud (Kumo), indicating a bullish stance.
For a continuation of the bullish momentum, traders are advised to target the reclaiming of the 192.00 level, followed by a breakthrough of the subsequent resistance area at 192.80. Upon surpassing these levels, the path would be open towards challenging the psychological barrier at 193.00, with potential further upside toward the year-to-date (YTD) high at 193.54.
Conversely, a decline below the Kijun Sen level situated at 191.06 could signify increased selling pressure, potentially exacerbating a drop beneath the confluence of an upslope support trendline and the 50-day moving average (DMA) at 190.55. Such a scenario may indicate further downside movement in the GBP/JPY pair.
