GBP/JPY Technical Analysis: Triangle breakdown favors the bears

Omkar Godbole FXStreet Contributor

The GBP/JPY pair is on the defensive, having dived out of a symmetrical triangle pattern earlier today and a key rising trendline last week.

4-hour chart

The triangle breakdown seen in the 4-hour chart indicates the sell-off from the recent lower high of 145.81 (Nov. 29 high) has resumed. More importantly, the pattern adds credence to the stacking order of the key moving averages - 50 below 100, below 200 - which indicates the path of least resistance is to the downside.

Daily chart

Over on the daily chart, the pair took out the trendline connecting from the Aug. 15 and Oct. 26 lows last Tuesday. Notably, the pair closed well below 114.02 (Nov. 20 low) last Tuesday, establishing the bearish lower-high and lower-low pattern.
The 5- and 10-day MAs are trending south, indicating a bearish setup. Further, the 14-day relative strength index (RSI) of 39.00 is also biased bearish.
So, the spot looks set to test the lower Bollinger band, currently located at 142.59.

Trend: Bearish

GBP/JPY

Overview:
    Today Last Price: 143.26
    Today Daily change: -26 pips
    Today Daily change %: -0.181%
    Today Daily Open: 143.52
Trends:
    Previous Daily SMA20: 145.01
    Previous Daily SMA50: 146.21
    Previous Daily SMA100: 145.47
    Previous Daily SMA200: 146.84
Levels:
    Previous Daily High: 144.23
    Previous Daily Low: 143.23
    Previous Weekly High: 145.52
    Previous Weekly Low: 142.84
    Previous Monthly High: 149.5
    Previous Monthly Low: 144.02
    Previous Daily Fibonacci 38.2%: 143.61
    Previous Daily Fibonacci 61.8%: 143.85
    Previous Daily Pivot Point S1: 143.09
    Previous Daily Pivot Point S2: 142.66
    Previous Daily Pivot Point S3: 142.09
    Previous Daily Pivot Point R1: 144.09
    Previous Daily Pivot Point R2: 144.66
    Previous Daily Pivot Point R3: 145.09

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD consolidates around 1.0900, bullish bias remains ahead of key US data

The EUR/USD pair is seen consolidating its strong gains registered over the past two days and oscillating in a narrow band during the Asian session on Tuesday. Spot prices currently trade around the 1.1900 mark, just below an over one-week high touched the previous day.

GBP/USD edges lower below 1.3700 on UK political risks, BoE rate cut bets

The GBP/USD pair trades on a weaker note around 1.3685 during the European session on Tuesday. The Pound Sterling edges lower against the US Dollar amid political risk in the United Kingdom and rising expectations of near-term Bank of England rate cuts.

Gold: Will US Retail Sales data propel it above $5,100?

Gold hovers below weekly highs of $5,087 early Tuesday, await US Retail Sales data. The US Dollar enters a downside consolidation phase amid persistent Japanese Yen strength and worsening labor market. Gold settled Monday above $5,000, now looks to take out $5,100 amid bullish daily RSI.

Top Crypto Gainers: World Liberty Financial, MemeCore and Quant gain momentum

World Liberty Financial, MemeCore, and Quant are leading gains over the last 24 hours as the broader cryptocurrency market stabilizes after last week’s correction. Still, the technical outlook for altcoins remains mixed due to prevailing downside pressure and vulnerable market sentiment.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.