GBP/JPY Breaks Pattern And Books New High

Technical analysis of Forex market

The Bank of England unexpectedly hiked interest rates on Thursday at 12:00 GMT. However, prior to the hike and surge that was caused by it, the rate broke the upper trend line of the channel down pattern, which has guided the rate since late October. Afterwards, anew December high level was booked at 152.65

On Friday morning, the rate was finding support in the 50-hour simple moving average near the 151.25 level. Meanwhile, the rate was ignoring the weekly R1 simple pivot point at 151.33.

If the simple moving average pushes the pair up, it could cone again reach the 152.65 level. However, to reach the high level, the pair would have to pass the resistance of the 152.00 mark, the weekly R2 simple pivot point and the 152.50 level.

On the other hand, a failure of the SMA might result in a decline to the 151.00 mark. Below the 151.00 level, the 200-hour SMA is strengthening the 150.50 level’s support. Meanwhile, take into account the weekly simple pivot point at 150.35 and the trend line, which connects December low levels.