- GBP/JPY takes bids near intraday high, battles one-week-old hurdle.
- Sustained trading above key SMA, trend lines join hopes of easy British budget to favor bulls.
- Horizontal area from mid-February adds to the downside filters.
GBP/JPY refreshes intraday high with 149.20 figures during the early Wednesday. In doing so, the quote justifies high hopes from today’s UK budget, backed by official hints to do “whatever it takes”.
Also on the positive side could be the strong RSI and successful trading above the key short-term support line, SMA.
However, a one-week-old horizontal area surrounding 149.20-25 questions the pair’s run-up to the yearly peak of 150.44. On its way up, GBP/JPY may catch a breather around the 150.00 threshold.
It should be noted that the quote’s sustained rise past-150.44 will have to cross April 20, 2018 low near 150.65-70 before extending the gains.
Meanwhile, 50-bar SMA and an upward sloping trend line from early February, respectively around 148.65 and 148.15, restrict the short-term downside of the GBP/JPY.
Also acting as the key immediate support is a region comprising multiple levels marked since February 16 around 147.40-45.
GBP/JPY daily chart