#GBPJPY @ 163.504 remains sidelined after breaking one-month-old ascending support line., @nehcap view: Further downside expected (Pivot Orderbook analysis)

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• GBP/JPY remains sidelined after breaking one-month-old ascending support line.
• Receding bullish bias of MACD adds strength to the downside bias.
• 200-day EMA appears the key support; descending trend line from late October strengths 163.80-90 resistance confluence.

The pair currently trades last at 163.504.

The previous day high was 163.79 while the previous day low was 162.99. The daily 38.2% Fib levels comes at 163.29, expected to provide support. Similarly, the daily 61.8% fib level is at 163.48, expected to provide support.

GBP/JPY treads water around 163.50 during early Tuesday, following a daily closing beneath the one-month-old support line, now resistance, the previous day. Not only the trend line breakdown but the receding bullish bias of the MACD also keeps the cross-currency pair’s sellers hopeful.

That said, the 200-day Exponential Moving Average (EMA) level of 162.00 appears the short-term key support for the GBP/JPY pair.

However, multiple supports near 161.60, 161.00 and the 160.00 psychological magnet could challenge the bears afterward.

Should the quote remains bearish past 160.00, a two-month-old ascending support line near 159.00 will be crucial to watch for further directions.

On the flip side, the support-turned-resistance line from early February joins a downward-sloping trend line resistance from October 31, 2022, to highlight 163.80-90 as the key upside hurdle. Also acting as the additional filter to the north is the 164.00 round figure.

In a case where the GBP/JPY remains firmer past 164.00, February’s high of near 166.00 could act as the last defense of the pair bears, a break of which could quickly propel the prices towards late 2022 peak surrounding 169.30 before highlighting the 170.00 round figure.

Overall, GBP/JPY is likely to remain on the bear’s radar even if the 200-day EMA probes sellers.

Trend: Further downside expected

Technical Levels: Supports and Resistances

GBPJPY currently trading at 163.51 at the time of writing. Pair opened at 163.44 and is trading with a change of 0.04% % .

The pair is trading above its 20 Daily moving average @ 161.74, above its 50 Daily moving average @ 160.4 , below its 100 Daily moving average @ 163.52 and above its 200 Daily moving average @ 163.45

The previous day high was 163.79 while the previous day low was 162.99. The daily 38.2% Fib levels comes at 163.29, expected to provide support. Similarly, the daily 61.8% fib level is at 163.48, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 163.02, 162.6, 162.22
• Pivot resistance is noted at 163.83, 164.21, 164.64

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