- GBP/JPY tries to conquer 138.6; bounce off 138.47
- RSI supports bullishness, BOE crucial
- The action above 139.00 will target 140.0 threshold
- Bears would like to see the price fall to a five-week trendline
GBP/JPY is awaiting the “Super Thursday” action and has formed a bullish formation ahead of the Bank of England monetary policy announcement.
The bullish pennant formation with a supportive RSI suggests a rally to 140.00 if the price moves above 139.00. GBP/JPY was trading around 138.55/60 before the UK market open. The upside momentum can push the currency pair to test the early-February low of 140.92.
Bulls will hope for further strength to test the February 2020 high near 145.00 after crossing February 18 low near 142.30.
But, all eyes will be on BOE as any disappointment from the central bank will cause a downward slide below 138.4; bears will then try to push it further down to a five-week-old support line around 136.35.
If bears successfully attack 136.35, then GBP/JPY will try to find support near 200-bar SMA of 135.16.