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  • GBP/JPY is struggling to rise past the 10-day moving average hurdle.  
  • The daily chart shows a bullish divergence of RSI.  

The GBP/JPY pair is bid, but struggling to rise above the 10-day moving average (MA) resistance of 136.24. As of writing, the pair is trading at 136.17, having hit a high of 136.28 earlier today.  

The 14-day relative strength index has charted higher lows since the end of May, contradicting the lower lows on GBP/JPY. That bullish divergence indicates seller exhaustion. That said, a daily close above 137.79 (July 1 high) is needed to confirm a bearish-to-bullish trend change.  

The resistance at 137.79 will likely come into play once the pair finds acceptance above the 10-day MA of 136.24.  

On the downside, key support is seen at 135.72 (hourly chart rising trendline). A violation there would allow retest of 135.00.  

Daily chart

Trend: Early signs of seller exhaustion

Pivot points