-
GBP/JPY is likely to encounter immediate support near 187.50, the lower boundary of its symmetrical triangle pattern.
-
The daily chart shows the pair consolidating within a symmetrical triangle, signaling market indecision.
-
A decisive breakout above the nine-day EMA at 188.96 could reinforce short-term bullish momentum.
GBP/JPY recovers recent losses, trading near 188.90 in early European hours on Thursday. The daily chart reveals that the currency pair is consolidating within a symmetrical triangle pattern, indicating a potential breakout in either direction following a phase of indecision.
The 14-day Relative Strength Index (RSI) remains below the neutral 50 level, suggesting ongoing bearish momentum. Meanwhile, GBP/JPY is testing the nine-day Exponential Moving Average (EMA). A confirmed breakout above this level, currently at 188.96, could support a short-term bullish reversal.
On the downside, immediate support is seen at the lower boundary of the triangle near 187.50. A clear break below this trendline would confirm a bearish breakout and could expose the pair to further losses, targeting the seven-month low of 184.38, recorded on April 9.
To the upside, a break above the nine-day EMA and the psychological 189.00 level could trigger fresh buying interest, with scope to challenge the upper boundary of the triangle near 189.70. A sustained breakout above this zone would tilt the bias to the bullish side, potentially paving the way toward the 50-day EMA at 191.11. Further strength could open the door for a retest of the three-month high at 196.10.
GBP/JPY: Daily Chart
