- GBP/JPY gained traction for the third consecutive session on Wednesday.
- Bulls are likely to wait for a sustained move beyond the 139.50 region.
The GBP/JPY cross edged higher for the third consecutive session on Wednesday and was last seen trading just below mid-139.00s – the highest level since June 8. The mentioned region coincides with the top boundary of an ascending trend-channel extending from late June and should act as a key pivotal point for short-term traders.
Meanwhile, RSI (14) on the daily is flashing slightly overbought conditions and warrant some caution for bullish traders. This, in turn, makes it prudent to wait for some strong follow-through buying before positioning for any further near-term appreciating move.
A convincing breakthrough will now set the stage for a move back towards June monthly swing highs, around the 139.75 region, before bulls eventually aim to lift the cross beyond the key 140.00 psychological mark.
On the flip side, any meaningful pullback below the 139.00 mark might now be seen as a buying opportunity and remain limited near the 138.75 region. That said, some follow-through selling might accelerate the slide further towards the 138.10-138.00 intermediate support en-route monthly lows, around the 137.75 region.
GBP/JPY daily chart