GBP/JPY Price Analysis: Bounces off 200-HMA towards 166.00, double tops eyed

• GBP/JPY extends four-day uptrend, stays firmer around one-week high.
• Double-top formation, sluggish RSI tests buyers amid recent inaction.
• Weekly support line adds to the downside filters before 200-HMA, monthly low.
• Six-year high, marked in June, could lure bulls on an upside break of 166.30.

GBP/JPY remains mildly bid around 165.75, following a four-day uptrend, as bulls renew the run-up towards a short-term key hurdle heading into Tuesday’s London open.

The cross-currency pair’s latest strength could be linked to the pair’s U-turn from the 200-HMA, as well as the ability to stay beyond the three-day-old support line.

However, the double-top bearish chart pattern and recent sluggish RSI challenge the bulls.

That said, a clear upside break of the double tops bear 166.30 appears necessary for the GBP/JPY bulls to aim for the monthly high of 168.73, also the highest levels since early 2016.

During the run-up, the 166.70 and the 167.00 threshold may entertain the pair buyers.

Alternatively, pullback remains elusive until the quote stay above the previously stated support line, near 165.00 by the press time.

Even if the quote drop below 165.00, the 200-HMA level surrounding 164.60 will act as an additional filter to the south before directing the bear to the monthly low of 160.00.

GBP/JPY: Hourly chart

Trend: Pullback expected