GBPJPY showed a minor pullback on the strong Pound sterling. It gained sharply against the US dollar as policy divergence between Fed and BOE diminished. The National institute of economic research also warns UK's economic downturn in 2023. This, in turn, capped the pound sterling further upside. Any violation above 1.1860 confirms further bullishness; a jump to 1.2000 is possible. Technically in the 4-hour chart, GBPJPY holds below 21-EMA, 55- EMA, and long-term 200 EMA (166.19). Any convincing close above 166.25 will take to the next level 166.75/167.61/168.50. GBPJPY hits an intraday high of 165.69 and is currently trading around 165.64.
The near-term support is around 165, a breach below targets 163.65/163.
Indicators (4-hour chart)
CCI (50) – Bearish
ADX- Neutral
It is good to sell on rallies around 167 with SL around 168 for a TP of 163.95.
