GBP/JPY Price Analysis: Retreats from three-week high but buyers stay hopeful ahead of BOE

• GBP/JPY takes offers to refresh intraday low, reverses from multi-day high.
• 50-DMA defends intraday buyers, bullish MACD signals, upbeat RSI favor upside momentum too.
• Five-month-old resistance line lures the bulls, 200-DMA adds to the downside filters.

GBP/JPY consolidates the biggest daily gains in a fortnight around 156.00 during Thursday’s Asian session.

In doing so, the cross-currency pair portrays the market’s cautious mood ahead of the Bank of England (BOE) monetary policy decision as the quote snaps a four-day uptrend to reverse from the highest levels since late February of late.

Read: BOE Interest Rate Decision Preview: A hat-trick and a difficult balancing act

Even so, bullish MACD signals and above 50 RSI (14), not overbought, keeps GBP/JPY buyers hopeful. Also favoring the pair bulls is the sustained trading above 200-DMA and 50-DMA.

That said, the latest pullback may aim for the 50-DMA level of 155.12 before eyeing the 200-DMA level of 153.35.

However, the quote’s declines past 200-DMA will be challenged by the 23.6% Fibonacci retracement (Fibo.) of October-December 2021 downside, around 151.15.

Alternatively, GBP/JPY bulls may wait for the fresh high of the month, currently around 156.57 to take new entries.

Following that, a descending trend line from October 2021 and February’s peak, respectively near 157.35 and 158.10, will challenge the upside moves.

GBP/JPY: Daily chart

Trend: Bullish