GBP/JPY holding above 158.00 ahead of UK CPI

The British Pound remained well supported against most of its major counterparts after the latest 'Brexit' polls showed a significant lead in favor of the 'remain' camp.

GBP shorts were caught off-guard and triggered a sharp short-covering rally for the GBP/JPY cross, lifting the pair back above 158.00 handle marking 50-day SMA resistance.

Investors now wait for the release of UK CPI print for the month of April, which is expected to print 0.5% rise in prices as compared to the previous year. Any signs of renewed decline in prices would further point to the 'Brexit' uncertainty taking its toll on the economy. However, in-line with estimates reading or a surprisingly higher reading would now be enough to allow the GBP/JPY pair to extend its upward trajectory.

Technical levels to watch

A sustained trade above 50-day SMA resistance near 158.15 region now seems to assist the pair to pierce through 159.00 round figure mark and head towards testing its next major resistance near 159.70-75 horizontal area.

On the flip side, weakness below 157.80 might be restricted and is likely to get bought into near 157.40-35 horizontal support. Only a decisive break below 157.40-35 support would negate the bullish bias and drag the pair further towards 156.70-65 support.