GBP/JPY is expected to continue its upside movement. The pair stands above the key horizontal support at 181.80 being well supported by both 20-period and 50-period intraday MAs. The intraday RSI is around its 50% neutrality area lacking downward momentum. Thus, even though a continuation of the consolidation cannot be ruled out, its extension should be limited. Further upside move is therefore expected with the next horizontal resistance and overlap set at 183.30 initially. A breakout above this level would call for further advance towards 183.85.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 183.30 and the second target at 183.85. In the alternative scenario, short positions are recommended with the first target at 181.30 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 180.80. The pivot point is at 181.80.

Resistance levels: 183.30 183.85 184.25

Support levels: 181.30 180.80 180.30