The bullish pattern on the chart of the GBP/JPY currency pair seems not to have ended when the surge to the latest high was successfully recorded again earlier this week.
Looking at the analysis shared last Friday, the price drop was shown to 161.200 after retreating from the 9-week high reached earlier at 163.700.
However, the bullish trend continues again with positive factors supporting the strengthening of the Pound at the beginning of this week related to the Brexit issue.
The UK and the European Union (EU) have reportedly agreed to amend the Northern Ireland protocol agreement which had previously been an obstacle to an agreement being reached by both parties.
With this latest report, the market evaluates it as a positive development in Europe and has driven the increase in the value of the Pound and also the Euro.
Thus, this situation has returned to support the continued bullish pattern on the GBP/JPY chart as trading nears the end of February.
On Monday yesterday, the price was seen to have continued its ascent, recording a new 10-week high of 164,500 in the Asian session this morning (Tuesday).
The zone became the latest resistance for the price and the price movement started to flatten below the zone heading into the European session.
The price remains on a bullish trend above the 1-hour Moving Average 50 (MA50) support level on the GBP/JPY chart after breaking through it since the end of last week.
A higher increase will be expected for the price to break through the resistance of 164,500 before the latest increase will reach around 166,200.
However, if the price fails to break above the 164.500 resistance, the decline could occur again and is likely to break below the MA50 support level.
Again signaling a bearish trend change, the price will test the 162.00 zone before continuing the decline to around 160.500.
