#GBPJPY @ 165.049 pokes a short-term key support line amid downbeat oscillators., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• GBP/JPY pokes a short-term key support line amid downbeat oscillators.
• Clear break of two-month-old support line becomes necessary for the bears to keep reins.
• Monthly resistance line restricts corrective rebound below 169.00 hurdle.

The pair currently trades last at 165.049.

The previous day high was 167.43 while the previous day low was 165.47. The daily 38.2% Fib levels comes at 166.68, expected to provide resistance. Similarly, the daily 61.8% fib level is at 166.22, expected to provide resistance.

GBP/JPY jostles with the key support near 165.00 as bears keep the reins near the lowest levels in a fortnight heading into Thursday’s London open. In doing so, the cross-currency pair braces for the first weekly loss in three as sellers poke an upward-sloping support line from early October.

That said, bearish MACD signals and downbeat RSI (14), not oversold, keeps GBP/JPY sellers hopeful of breaking the immediate support surrounding 165.00.

However, the 100-DMA and the 200-DMA could challenge the GBP/JPY pair afterward around 164.35 and 162.80 in that order.

Following that, a downward trajectory toward October’s low surrounding 159.73 can’t be ruled out. During the fall, the 160.00 psychological magnet may act as a buffer.

Meanwhile, recovery moves will have to cross a descending resistance line from October 31, near 167.85 to convince GBP/JPY buyers.

Even so, multiple tops marked in November around 169.00 could challenge the upside momentum.

It’s worth noting that the 170.00 round figure and the yearly top marked in October around 172.15 may test the pair buyers before giving them control.

Overall, GBP/JPY is likely to remain bearish but the room towards the south appears limited.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

GBPJPY currently trading at 165.08 at the time of writing. Pair opened at 166.47 and is trading with a change of -0.83% % .

The pair is trading below its 20 Daily moving average @ 166.6, below its 50 Daily moving average @ 165.4 , above its 100 Daily moving average @ 164.33 and above its 200 Daily moving average @ 162.78

The previous day high was 167.43 while the previous day low was 165.47. The daily 38.2% Fib levels comes at 166.68, expected to provide resistance. Similarly, the daily 61.8% fib level is at 166.22, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 165.48, 164.49, 163.52
• Pivot resistance is noted at 167.44, 168.42, 169.41

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