GBPJPY, Time frame: 1DGBPJPY, Time frame: 1D

GBP/JPY continues to respect a well-defined ascending channel, maintaining the higher-high and higher-low structure that has driven the pair's recovery from the September lows near 207.00. Despite recent pullbacks, buyers remain firmly in control of the broader trend, repeatedly stepping in at channel support and preventing a deeper correction.

The question now is whether bulls can finally overcome a resistance level that has repeatedly stalled the advance.

The most important level on the chart remains 213.25.

This resistance zone has rejected several recent rallies, with sellers consistently emerging whenever price approaches the upper boundary of the channel. The repeated failures highlight the significance of this level and suggest that market participants view it as a key profit-taking area.

However, repeated tests can also weaken resistance over time. If buyers continue applying pressure, the probability of an eventual breakout may increase.

One of the strongest bullish features of the current setup is the integrity of the ascending channel.

The trendline linking the September and October lows remains untouched, while each retracement has produced another higher low. This pattern indicates that buyers remain willing to accumulate positions on weakness rather than wait for lower prices.

The latest bounce from the lower half of the channel reinforces the idea that dips are still being viewed as buying opportunities.

Bollinger Bands Confirm the Bullish Structure

The Bollinger Bands continue to support the broader recovery.

Key levels include:

  • Upper Band: 213.25
  • Midline: 210.98
  • Lower Band: 208.71

Price remains above the Bollinger midpoint near 210.98, a sign that the short-term trend remains positive. Notably, the upper Bollinger Band aligns almost perfectly with the horizontal resistance at 213.25, creating a powerful resistance cluster that traders cannot ignore.

A decisive move through this zone would strengthen the bullish case considerably.

RSI 

The Relative Strength Index is currently trading around 56, while remaining above its signal line near 55. Although RSI has cooled from previous highs, it remains comfortably above the neutral 50 level, indicating that bullish momentum remains intact.