The GBP/JPY pair is expected to trade with a bullish bias. A support base at 131.20 was formed and has allowed for a temporary stabilization. The pair is expected to post a rebound as the intraday relative strength index is mixed to bullish. The further upside is therefore expected with the next horizontal resistance and overlap set at 188 at first. A breakout above this level would call for further advance towards 188.40.The

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 188 and the second target at 188.40. In the alternative scenario, short positions are recommended with the first target at 186.50 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 185.95. The pivot point is at 186.90.

Resistance levels: 188 188.40 189

Support levels: 186.50 185.95 185.30