• GBP/JPY picks up bids to refresh intraday high, snaps two-day downtrend.
• 78.6% Fibonacci retracement, two-month-old resistance line challenge bulls.
• Fortnight-long support line restricts immediate downside, 200-DMA offers extra hurdle to the north.

GBP/JPY refreshes intraday high to 150.38, up 0.16% on a day while consolidating the latest losses ahead of Tuesday’s European morning.

The cross-currency pair keeps the bounce off a two-week-long ascending support line amid bullish MACD signals to direct GBP/JPY towards 78.6% Fibonacci retracement level of July-October upside, near 150.50.

However, a downward sloping trend line from late October, near 151.20, will be a tough nut to crack for the GBP/JPY buyers, which if broken could direct the quote towards the 200-DMA level of 152.50.

Alternatively, a downside break of the stated nearby support line, surrounding 149.60, will highlight the monthly low and September’s bottom around 149.00.

Also acting as the key support is July’s low of 148.46 and late 2019 peak of 147.95.

To sum up, GBP/JPY licks its wounds but remains on the bear’s radar.

GBP/JPY: Daily chart

Trend: Further recovery expected