GBP/JPY: Building on Support 17/5/2022

Positive trading dominated the movements of the pound sterling against its Japanese counterpart during the first trading of this week as part of an attempt to compensate for the losses that the pair witnessed last week, recording its highest level of 159.70.

On the technical side, today, the pair’s current moves are witnessing a pivot above the 158.70 support floor, accompanied by the positive motive coming from the 50-day simple moving average, which meets around 158.20.

There is a possibility of an upward bias in the coming hours, knowing that the breach of 159.60 is a catalyst that enhances the chances of a rise to visit 160.30, a first target, and gains may extend later to visit 161.00 as long as the price is stable above 158.60 and in general above 158.20.

Note: The risk is high.

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: 158.10	R1: 160.35
S2: 156.60	R2: 161.15
S3: 155.80	R3: 162.60