GBP/JPY Price Analysis: Daily technical setup turns in favor of the bulls

• GBP/JPY’s rebound to find more legs above this key hurdle.
• The cross spots a bull flag on the daily chart amid bullish RSI.
• Bullish crossover to play out ahead of the Fed and BOE verdicts.

GBP/JPY is snapping its three-day bearish streak, rebounding firmly above 156.00 ahead of the critical Federal Reserve’s (Fed) and Bank of England (BOE) monetary policy decisions.

The latest downtrend in the cross could be attributed to the looming Brexit risks and a broad-based US dollar rebound, as investors reassess the rate hike bets from the major central banks.

Looking ahead, the Fed speculations will continue influencing the pair ahead of the FOMC outcome due later on Wednesday. Ahead of that the US ADP and ISM Services PMI will also offer some fresh trading incentives amid a public holiday in Japan.

Technically, GBP/JPY is hovering within a potential bull flag, carved out from the ongoing corrective pullback after a staggering rally to five-year tops above 158.00.

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