GBP/JPY Price Forecast: Retains bullish bias below mid-215.00s/weekly top ahead of UK CPI

The GBP/JPY cross trades with a positive bias for the third straight day and touches a fresh weekly top, around the 215.35-215.40 region during the Asian session on Wednesday. Spot prices remain well within striking distance of the highest level since July 2008 touched last week, as bulls now await the release of the latest UK consumer inflation figures before placing fresh bets.

The crucial UK Consumer Price Index (CPI) will be looked upon for reaffirm expectations for at least one 25-basis-point (bps) rate hike by the Bank of England (BoE) by the end of 2026, which should inspire the British Pound (GBP) bulls. The Japanese Yen (JPY), on the other hand, continues to be undermined by economic concerns stemming from conflicts in the Middle East and bets that the Bank of Japan (BoJ) will hold interest rates steady at its upcoming April meeting. The supporting factors, in turn, suggest that the path of least resistance for the GBP/JPY cross is to the upside.

The recent solid rebound from the vicinity of the 100-day Exponential Moving Average (EMA) pivotal support and a subsequent breakout through the 213.10-213.15 horizontal barrier suggest that the broader uptrend stays intact. Adding to this, momentum indicators remain constructive. The Relative Strength Index (RSI) is hovering in bullish territory around 64, and the Moving Average Convergence Divergence (MACD) holds positive ground. This hints that buying pressure is dominant despite recent consolidation below multi-year highs, and even if upside follow-through has moderated.

The lack of nearby resistance beyond the 216.00 mark implies that any fresh break higher could see the GBP/JPY cross probing uncharted territory. Moreover, momentum gauges suggest that pullbacks are more likely to be corrective than trend-changing while the market holds above the 210.60 area, or the 100-day EMA. A deeper pullback would be expected to attract dip-buying interest in the context of the prevailing uptrend.

GBP/JPY daily chart