• GBP/JPY takes the bids to refresh intraday high, extends bounce off two-month low.
• Firmer RSI, not overbought, joins trend line and 50-SMA break to favor bulls.
• Early November’s swing low, seven-week-old descending trend line in focus.

GBP/JPY stays on the front foot around 151.00, refreshing daily high with 0.37% intraday gains ahead of Tuesday’s London open.

In doing so, the cross-currency pair extends the previous day’s rebound from the lowest level since September while recently piercing the one-week-old descending trend line and 50-SMA.

Given the firmer RSI conditions, not overbought, favor the bullish impulse, the quote is likely to rise further beyond the 151.00 threshold.

That said, the 38.2% Fibonacci retracement (Fibo.) of the quote’s downside from late October joins the early November’s swing low to guard the immediate upside around 152.50.

Also acting as an important hurdle for the GBP/JPY advances is a descending resistance line from October 20, near 152.75.

Meanwhile, the corrective pullback may have to drop back below the 50-SMA and resistance-turned-support line, respectively around 150.90 and 150.55, before retesting the 150.00 round figure.

Should GBP/JPY bears manage to conquer the 150.00 psychological magnet, lows marked during September and July, around 148.95 and 148.45, should lure return to the charts.

GBP/JPY: Four-hour chart

Trend: Further recovery expected