“¢ The cross held on to its weaker tone through the early European session, albeit managed to find decent support near 100-hour SMA and recovered a part of the early losses to the 145.00 neighbourhood.
“¢ The cross seemed rather unaffected by a slight disappointment from the UK construction PMI, with neutral technical indicators on hourly/daily charts also failing to support any firm intraday direction.
“¢ The mentioned support also coincides with 50% Fibonacci retracement level of 143.82-146.35 the recent upsurge and should now act as a key pivotal point for the pair’s next leg of a directional move.
“¢ A sustained weakness below the key 145.00 psychological mark is likely to accelerate the slide back to weekly lows, around the 144.40-35 region, before the cross eventually drops to the 144.00 handle.
“¢ On the flip side, the 145.70-80 region (23.6% Fibo. level) has now emerged as an immediate resistance, above which the cross could surpass the 146.00 handle and aim to retest the overnight swing high.
GBP/JPY 1-hourly chart
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