• GBP/JPY fades the week-start recovery as buyers flirt with bullish chart pattern.
• Sustained trading above 50-HMA, firmer RSI teases bulls.
• Successful trading above 165.00 appears necessary to aim for late June’s peak.

GBP/JPY struggles to keep buyers on the table as it retreats to 164.70 heading into Tuesday’s London open. Even so, the weekly inverse head-and-shoulder (H&S) bullish formation joins the quote’s sustained trading above 50-HMA to push back the bears.

However, the cross-currency pair’s upside hinges on the successful break of the stated bullish formation’s neckline, around 165.00.

Following that, the theory suggests a run-up towards late June’s swing high near 167.00 while the monthly peak of 166.25 can act as an intermediate halt.

It’s worth noting that June 22 peak near 167.85 and the yearly high marked in the last month around 168.75 could challenge the GBP/JPY buyers past 167.00.

Alternatively, pullback remains elusive until the quote stays beyond the 50-HMA, around 164.10.

Following that, the recent swing low around 163.00 and the monthly low of 160.40 could lure the GBP/JPY sellers. Also acting as the downside filter is the 160.00 psychological magnet.

Overall, GBP/JPY hints at further upside as it portrays a bullish chart formation.

GBP/JPY: Hourly chart

Trend: Further upside expected