#GBPJPY @ 163.352 extends the previous day’s pullback from 38.2% Fibonacci retracement., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• GBP/JPY extends the previous day’s pullback from 38.2% Fibonacci retracement.
• 200-SMA, seven-week-old support line restrict short-term downside.
• Bulls have multiple hurdles before challenging the yearly top.

The pair currently trades last at 163.352.

The previous day high was 163.84 while the previous day low was 162.94. The daily 38.2% Fib levels comes at 163.5, expected to provide resistance. Similarly, the daily 61.8% fib level is at 163.29, expected to provide support.

GBP/JPY remains pressured towards the 200-SMA as it extends the previous day’s losses to 163.40 during Wednesday’s Asian session. In doing so, the cross-currency pair justifies the recent pullback from the 38.2% Fibonacci retracement level of the August-September upside.

Given the downbeat MACD and RSI (14), are not oversold, the GBP/JPY prices are likely to stay depressed, which in turn favors the odds of breaking the 200-SMA support near 163.00.

However, the 61.8% Fibonacci retracement level and an upward sloping support line from early August, respectively near 162.45 and 161.75, could challenge the GBP/JPY bears afterward.

Should the cross-currency pair drop below 161.75, the bears can aim for the monthly low surrounding 160.65 before directing the sellers towards the 160.00 psychological magnet.

Alternatively, the 38.2% Fibonacci retracement level near 164.30 appears the immediate hurdle for the GBP/JPY buyers to tackle.

Following that, multiple resistances are there between 166.00 and 168.80 to challenge the bulls, a break of which could quickly refresh the yearly top surrounding the 170.00 level.

Overall, GBP/JPY is likely to witness further downside but the room to the south is limited.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

GBPJPY currently trading at 163.42 at the time of writing. Pair opened at 163.64 and is trading with a change of -0.13% % .

The pair is trading below its 20 Daily moving average @ 163.43, above its 50 Daily moving average @ 163.27 , above its 100 Daily moving average @ 163.07 and above its 200 Daily moving average @ 160.12

The previous day high was 163.84 while the previous day low was 162.94. The daily 38.2% Fib levels comes at 163.5, expected to provide resistance. Similarly, the daily 61.8% fib level is at 163.29, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 163.11, 162.57, 162.21
• Pivot resistance is noted at 164.01, 164.37, 164.9

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