GBPJPY - Solid demand

GBPJPY (1H) - short term bullish bias

The pound sterling is in a daily horizontal consolidation pattern following its surge in October. As the price reaches the lower end of the range, day traders can buy into the bounce. The RSI divergence at the 139.40 support level is a solid indication that the selling pressure had waned. The breakout above 139.85 and the bullish MA cross are a further confirmation that sentiment has turned cheerful. As the RSI remains in the neutral area, we may expect the price to rally towards 140.20.

Key support: 139.60
Key resistance: 140.20