GBPJPY: Focus on 145.700 resistance

The GBP Bulls have been encouraged by Michel Barnier’s Brexit talks, saying that “it would be realistic to expect a deal in 6-8 weeks”

Looking at the GBPJPY, Dragon was pricing 160.200 when Brexit started. BoE went to rate hike twice since Brexit started. BoJ keeps the monetary policy unchanged.

On the weekly charts, RSI is testing the downtrend resistance. 148.500 is the critical resistance and the breakout of 148.500 may be the start of a new bullish trend.

On the smaller chart timeframes, the pair is forming a cup with a handle pattern. Breakout of 145.700 will make the formation working.

The pullbacks and closings below 143.70 would indicate to me that the market is not convinced.

Barnier’s explanation is promising but still uncertainties for the UK and the Pound are not resolved.

Breakout of the 145.700 might carry the price 148.200 and 148.500.

148.500 critical resistance will determine the new roadmap. Convincing daily closings above 148.500 will be the trend reversal.