GBPJPY Price Analysis: Bears attack weekly support around 165.00
- GBPJPY remains pressured near a short-term key support line.
- Convergence of 50-SMA, two-week-old descending trend line restricts immediate upside.
- Six-week-old horizontal support lures bears, 100-SMA acts as extra filters to the north.
- RSI, MACD favor sellers as the pair fades the bounce off the monthly low.
GBPJPY remains pressured around 164.80 as sellers poke a one-week-old ascending support line during Wednesday’s Asian session. In doing so, the cross-currency pair fades the recovery moves from a two-week low while portraying a downtrend since October 31.
That said, the quote’s failure to cross the convergence of a 50-SMA and a fortnight-long descending resistance line, around 166.00-20, joins the retreat of the Relative Strength Index (RSI) placed at 14 to tease the sellers. On the same line could be the receding bullish bias of the Moving Average Convergence and Divergence (MACD) indicator.
With this, the GBPJPY bears are likely to conquer the immediate support line around 164.80, which in turn could drag the quote towards a 1.5-month-old broad support area between 162.60 and 163.00.
Although the quote is more likely to rebound from the aforementioned key support zone, a downside break of 162.60 won’t hesitate to challenge the previous monthly low near 159.70.
Alternatively, a daily closing beyond 166.20 could quickly propel GBPJPY toward the 100-SMA hurdle of 167.85.
Following that, the previous week’s top and the October 31 peak, respectively near 169.10 and 172.10, could challenge the pair buyers.
GBPJPY: Four-hour chart
Trend: Further downside expected
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.
