#GBPJPY @ 174.465 advanced slightly on Thursday near the 148.50 mark. (Pivot Orderbook analysis)

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• GBP/JPY advanced slightly on Thursday near the 148.50 mark.
• Technicals still point to overbought conditions, suggesting that a downward correction may be on the horizon.
• The Sterling traded strongly against its major rivals.

The pair currently trades last at 174.465.

The previous day high was 174.43 while the previous day low was 172.67. The daily 38.2% Fib levels comes at 173.76, expected to provide support. Similarly, the daily 61.8% fib level is at 173.34, expected to provide support.

The GBP/JPY advanced slightly on Thursday’s session, mainly benefiting from weak Q1 Gross Domestic Product (GDP) data from Japan. On the other hand, the Sterling traded strongly across the board, seeing gains against the USD, CHF, EUR and AUD. Furthermore, the JPY’s downside potential is limited as the Yen gets traction on the prospects of the Bank of Japan (BoJ) interventions and cautions market mood.

The Japanese Yen is finding support from the recent expectations of further interventions by the BoJ to bolster the domestic currency. Additionally, the JPY’s safe-haven appeal is benefiting from a cautious market sentiment due to concerns about a global economic slowdown, particularly in China.

On the other hand, market expectations are currently pointing towards an anticipated interest rate hike by the Bank of England (BoE) from 4.5% to 4.75% on June 22. Moreover, markets discount a roughly 60% probability that rates will reach a peak of 5.5% later in the year. In that sense, the recent surge in UK core inflation figures to a 31-year high has fueled expectations of a more hawkish stance from the Bank of England, providing traction to the Sterling.

Technically speaking, the GBP/JPY holds a neutral to bullish outlook for the short term while the bulls seemed to have taken a breather. The Relative Strength Index (RSI) currently stands near 67.00, just below the overbought area after getting rejected by 70.00 since the end of May suggesting that if the bulls fail to break it, a downward correction may come into play.

Upcoming resistance for GBP/JPY is seen at the zone of 174.70 before uncharted territory. On the other hand, the next support levels to watch are the 174.00 zone, followed by the psychological mark at 173.00 and the 172 area.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 174.46 at the time of writing. Pair opened at 174.28 and is trading with a change of 0.1 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 172.34, 50 SMA 169.2, 100 SMA @ 165.26 and 200 SMA @ 164.66.

The previous day high was 174.43 while the previous day low was 172.67. The daily 38.2% Fib levels comes at 173.76, expected to provide support. Similarly, the daily 61.8% fib level is at 173.34, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 173.16, 172.03, 171.39
• Pivot resistance is noted at 174.92, 175.56, 176.69

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