GBP/JPY Price Analysis: Holds the ground near 180.60 area, eyes on a Bull Cross

• GBP/JPY holds the ground near 180.60 area, down 0.33% on the day.
• The Relative Strength Index (RSI) stands in the 40-60 zone, indicating the non-directional movement.
• The key resistance emerges at 180.80, the critical support level to watch is located at 180.00.

The GBP/JPY pair hovers around the 180.60 mark in the Asian session on Friday. The cross struggles to gain traction after retreating from the 181.40 region.

It’s worth noting that the Relative Strength Index (RSI) is located in the 40-60 zone, indicating the non-directional movement of the pair. However, the 25-hour Exponential Moving Average (EMA) is on the verge of crossing the 50-hour EMA. If a decisive crossover occurs on the one-hour chart. It would validate a Bull Cross highlighting the path of  least resistance for the cross is to the upside. 

GBP/JPY’s key resistance emerges at 180.80, representing a confluence of the 25- and 50-hour EMA. Any meaningful follow-through buying could pave the way to the next hurdle at 181.40 (High of July 13) en route to 182.00 (psychological level, High of July 11). A convincing break above the latter will trigger a rally to 182.65 (Low of July 6).

On the flip side, the critical support level to watch is at 180.00, the confluence of psychological round mark and a low of July 13. A breach of the mentioned level, further downside is expected. The next contention is seen at 179.55 (low of July 12), followed by 178.80 (low of June 16), and finally at 178.20 (low of June 15).

GBP/JPY one-hour chart