GBP/JPY is expected to trade with bearish bias as key resistance is at 183.05 intraday. The pair rebounded on the upside and is trading above its 20- and 50-period MAs. The intraday RSI is above its neutrality level at 50. Nevertheless, the upward potential is likely to be limited by the resistance at 183.05. As long as this key level is not broken, the pair is likely to test its previous low at 181.45 again. A break below this level would call for a further drop towards 180.90.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 181.45. A breakout of that target will move the pair further downwards to 180.90. The pivot point stands at 183.05. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 183.85 and the second target at 184.45.
Resistance levels: 183.85 184.45 185.15
Support levels: 181.45 180.90 180.45
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