GBP/JPY Price Analysis: Pierces 138.00 as Brexit hopes get real

• GBP/JPY picks up bids inside a short-term rising channel.
• 137.75/70 becomes the key support, Brexit optimism favor the bulls.

GBP/JPY rises to 138.32, currently up 0.13% intraday around 138.20, during Tuesday’s Asian session. The pair recently gained after The Sun reported that a trade deal between the European Union (EU) and the UK is likely coming early next week.

Read: Breaking: David Frost tells PM Johnson to prepare to shake on EU trade deal ‘early next week’

While Friday’s high of 138.50 can offer immediate resistance, the upper line of an ascending channel stretched from Thursday, at 138.92 now, could challenge the GBP/JPY buyers afterward.

During the pair’s sustained run-up past-138.92, the 139.00 round-figure and 139.80 can act as buffers ahead of the run-up towards the 140.00 psychological magnet.

Meanwhile, a confluence of 200-HMA, support line of the stated channel and 50% Fibonacci retracement of November 05-11 upside near 137.75/70 becomes the key support to watch.

If at all the GBP/JPY bears sneak in around 137.70, the 61.8% Fibonacci retracement level near 137.10 and November 05 high around 136.30 could return to the charts.

GBP/JPY hourly chart

Trend: Bullish