- GBP / JPY is recovering from the eight-week low, still below the confluence of key short-term resistances.
- The 61.8% Fibonacci retracement holds the key to the March low.
- ADM 10 days, 38.2% Fibonacci retracement adds to the upward barrier.
Despite the rebound from the lowest since March 24, the GBP / JPY pair posted a loss of 0.05% while advancing to 129.60 before the European session on Monday.
The pair’s immediate rallies are guarded by a 50% confluence of upward March-April Fibonacci retracement as well as a bearish trend line from April 21, around 129.90.
If the pair manages to cross the confluence of resistance at 129.90, it must cross 130.00 round figures to challenge another upward barrier around 131.30 which includes a 10 day SMA and a Fibonacci retracement at 38 , 2%.
Meanwhile, the pair’s drop below the intraday low of 129.32 may target a Fibonacci retracement level of 61.8% at 128.50.
During prolonged price declines below 128.50, 127.20 and 125.50 / 45 can keep the bears entertained before pleasing them with the March low around 124.05.
GBP / JPY daily chart