• GBP/JPY picks up bids to refresh intraday high inside a bullish chart pattern.
• Firmer RSI adds strength to the recovery moves, 200-HMA adds to the upside filters.

GBP/JPY renews daily top around 161.45 as it extends the corrective pullback from a two-week low heading into Tuesday’s London open.

In doing so, the cross-currency pair pares recent losses inside a weekly falling wedge bullish chart pattern, backed by the firmer RSI conditions.

Given the recent recovery in the RSI, not overbought, the GBP/JPY prices are likely to extend the rebound towards the wedge’s upper line, near 161.85.

However, a break of 161.85 hurdle will need validation from the 200-HMA, surrounding 162.30, to confirm the firmer upside towards the previous week’s top surrounding 163.90.

Meanwhile, pullback moves may aim for the 161.00 round figure before the wedge’s support line, around 160.00, could test the GBP/JPY bears.

Even if the GBP/JPY prices drop below 160.00, April’s bottom near 159.60, as well as March’s low of 159.00, will act as the last defenses for the pair buyers.

GBP/JPY: Hourly chart

Trend: Further recovery expected