- GBP/JPY keeps bounces off a short-term key EMA after flashing bullish candlestick formation.
- Early-month tops may offer intermediate halt during the run-up to the monthly high.
- Sellers have multiple barriers, despite bearish MACD, before retaking controls.
GBP/JPY gains 0.14% on a day while taking the bids near 138.65 during the early Tuesday. The pound cross flashed a bullish candlestick formation the previous day while recovering from 21-day EMA.
As a result, buyers refrain from respecting bearish MACD conditions while targeting 139.20/25 area comprising the highs marked on July 31 and August 06.
Should the bulls remain dominant past-139.25, a falling trend line from August 13 near 139.85 and 140.00 can challenge the further upside ahead of the monthly top surrounding 140.20.
Alternatively, a downside break below the 21-day EMA level of 138.30 will divert sellers towards the month’s low around 137.75.
However, the pair’s downside break of 137.75 will make it vulnerable to revisit July 22 peak close to 136.60.
GBP/JPY daily chart
Trend: Pullback expected