GBP/JPY: Building on Support 16/2/2022

During yesterday’s trading session, the Pound Sterling presented positive trades, benefiting from a base at the 156.20 support level, recording its highest level near the pivotal resistance 157.00.

On the technical side, the pair is trying to consolidate above 156.20, accompanied by the positive attempts of the stochastic indicator, in addition to the stability of the RSI above the mid-line 50 on the short time frames.

There may be a possibility of retesting 157.00, considering that its breach is a catalyst that contributes to strengthening the Pound’s gains against its Japanese counterpart, to visit 157.40 next station as long as the price is stable above 156.20.

The decline below the mentioned support level 156.20 postpones ​​the rise and puts the price under negative pressure, whose target maybe around 155.65.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 156.20	R1: 157.00
S2: 155.65	R2: 157.40
S3: 155.25	R3: 157.90