GBP/JPY Price Analysis: Sellers brace for 152.40
- GBP/JPY fades bounce off weekly bottom, tested the previous day.
- Sustained trading below key SMA, trend lines join downbeat RSI to back the bears.
- Two-month-old horizontal line can challenge further downside ahead of monthly low.
GBP/JPY struggles to overcome the week’s low, seesaws near 153.00, amid Wednesday’s Asian session. The cross-currency pair recently marked a four-day downtrend, before the latest consolidation, following its U-turn from a monthly resistance line.
The bearish impulse could also be traced from a one-week-old downward sloping trend line and sustained trading below 200-SMA, not to forget weak RSI.
Hence, GBP/JPY sellers are on their way to revisit the horizontal area comprising levels from late April, around 152.40. Though, likely oversold conditions of RSI and the strong support may test the bears afterward.
Should the quote drop below 152.40, the monthly low near 151.30 and the 15.00 threshold will be in the spotlight.
Alternatively, corrective pullback first needs to tackle the immediate resistance line near 153.80 ahead of revisiting the 200-SMA hurdle near 154.50.
It should, however, be noted that the GBP/JPY bulls remain unconvinced until the quote stays below monthly trend line resistance near 154.95.
GBP/JPY four-hour chart
Trend: Bearish
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
