GBP/JPY Price Analysis: Consolidates near weekly tops, just below 153.00 mark

• GBP/JPY was seen oscillating in a narrow band through the first half of the European session.
• The formation of a bullish inverted head & shoulders supports prospects for additional gains.
• Bulls might wait for a sustained move beyond the 153.40-45 region before placing fresh bets.

The GBP/JPY cross remained confined in a narrow trading band through the first half of the European session and consolidated the previous day's post-BoE positive move to weekly tops. The GBP/JPY cross was last seen trading nearly unchanged for the day, with bulls awaiting a move beyond the 153.00 mark.

Looking at the technical picture, the recent price action over the past one month or so constitutes the formation of a bullish inverted head and shoulder pattern on the 4-hour chart. The neckline resistance is pegged just ahead of mid-153.00s, which should act as a key pivotal point for short-term traders.

Meanwhile, technical indicators on the mentioned chart have just been gaining positive traction and add credence to the constructive setup. Moreover, oscillators on the daily chart have just moving into the bullish territory and support prospects for an extension of this week's bounce from the vicinity of the 151.00 mark.

That said, it will still be prudent to wait for a sustained break through the neckline resistance, around the 153.40-45 area, before confirming a near-term bullish breakout. The GBP/JPY cross might then aim to reclaim the 154.00 mark. The momentum could further get extended towards the next relevant hurdle near the 154.55-60 region.

On the flip side, the 152.50 level now seems to protect the immediate downside. Any subsequent decline might now be seen as a buying opportunity near the 152.00 round-figure mark. This, in turn, should help limit any further downside for the GBP/JPY cross near the weekly swing lows, around the 151.15 area touched on Monday.

GBP/JPY 4-hour chart

Technical levels to watch