Taking a look at GBP/JPY as an engulfing candlestick on the 4-hourly timeframe has just formed.

Taking a look at GBP/JPY as an engulfing candlestick on the 4-hourly timeframe has just formed, currently, the pound is trading at around £1.8199 against the yen. We can see that the forex pair may have created a base for the time being at £1.8080, a break below this base would suggest that the recent bearish trend is not yet over. This could see the pair slide lower to the next support level which sits at £1.8041. However, as we have a base and a small break towards the upside, we can take a look at some resistance levels. The pair has broken through the 20-day moving average and has tested the 50-day MA, although it hasn’t closed above it just yet. If we see a move above it, we could see an extension towards the 100-day MA, which currently reads £1.8284. If we look at the technical indicators, the  MACD has now turned comfortably positive and so has the RSI as it reads 58.