GBP/JPY Technical Analysis: Awaits pennant breakout

• The GBP/JPY pair has created a pennant pattern on the hourly chart.
• A bull breakout would confirm a short-term bearish-to-bullish trend change and would open the doors to 141.69 (200-hour moving average).
• The 50-hour and 100-hour MAs have bottomed out and the relative strength index (RSI) has moved above 50.00 (in bullish territory). Hence, the pair could soon find acceptance above the pennant resistance of 140.90.

Hourly chart

Spot Rate: 140.83

Daily High: 140.97

Daily Low: 140.75

Trend: Bullish above 140.90

Resistance

R1: 141.05 (100-hour moving average)

R2: 141.69 (10-day MA + 200-hour MA)

R3: 142.47 (resistance of Aug. 14 high on the hourly chart)

Support

S1: 140.44 (support as per the hourly chart)

S2: 140.23 (Aug. 17 low)

S3: 139.9 (Aug. 15 low)