GBP/JPY struggling to conquer 161.00 level

The GBP/JPY pair is once again reversing from 161.00 handle, confirming a strong supply zone around 4-week high levels and is currently trading at the mid-point of 160.00-161.00 handle.

On Tuesday, the GBP/JPY pair gained traction after the latest 'Brexit' poll results from ORB International for the Daily Telegraph showed the 'Remain' camp extending their lead to 55% compared to 42% for the 'Leave' camp. The pair rebounded from 50-day SMA support near 158.00 level and surged past 160.00 psychological mark with ease to retest its recent daily closing highs resistance near 161.00 area.

Meanwhile, the global risk-on rally across world equity markets seems to dent demand for the perceived safe-haven currency (JPY) and extend support to the GBP/JPY cross despite of a slightly depressed British Pound.

From technical perspective, the pair needs to sustain and build on to its strength above 161.00 handle in order to confirm additional recovery in the near-term.

Technical levels to watch

From current levels, last week's high near 161.55-60 area, also coinciding with 100-day SMA remains immediate strong resistance to clear, which if conquered seems to boost the pair beyond 162.00 round figure mark towards its next major horizontal resistance near 162.65-70 area.

Alternatively, extension of the reversal momentum is likely to find immediate support near 160.00 psychological mark. Inability to conquer immediate strong resistance near 161.00 and subsequent drop back below 160.00 handle might turn the pair vulnerable to head back towards retesting 50-day SMA strong support near 158.00 region.