GBP/JPY Price Analysis: Falls toward 193.00 near nine-day EMA within ascending channel

• GBP/JPY tests immediate support at 14-day EMA of 193.13, followed by the nine-day EMA at 192.92 level.
• The 14-day RSI dips below the 50 level, indicating that bearish momentum remains intact.
• The primary resistance appears at the upper boundary of the ascending channel at the 195.20 level.

GBP/JPY retraces its recent gains registered in the previous session, trading around 193.30 during the European hours on Monday. An analysis of the daily chart showed the pair remains within the ascending channel pattern, indicating a potential bullish bias.

Additionally, the GBP/JPY cross trades above the 9- and 14-day Exponential Moving Averages (EMAs), suggesting short-term price momentum is stronger. However, the 14-day Relative Strength Index (RSI), a key momentum indicator, pulls back below the 50 level, signaling that bearish momentum is still in play. A successful rise above the 50 mark would confirm the shift toward a bullish bias.

Regarding its support, the GBP/JPY cross tests immediate 14-day EMA at 193.13, followed by the nine-day EMA at 192.92 level. Further support appears at the lower boundary of the ascending channel around the 192.70 level.

A break below the ascending channel could strengthen the bearish bias, putting downward pressure on the GBP/JPY cross and potentially driving it toward the eight-week low at 189.34, recorded on January 17.

On the upside, the GBP/JPY cross could retest its primary resistance at the upper boundary of the ascending channel at the 195.20 level. A break above this channel would reinforce the bullish bias and support the currency cross to approach its January high at 198.26, reached on January 7.

GBP/JPY: Daily Chart