- GBP/JPY seesaws near six-week low after breaking key support lines yesterday.
- MACD turns the most bearish in six-months, suggests further downside.
- August 21 low adds to the immediate upside barriers.
GBP/JPY seesaws around 136.00 during the early Friday. The Pound cross broke upward sloping trend lines stretched from March and May months during its slump marked on Thursday. Even so, 100-day SMA challenged the bears’ governance.
The pair’s latest bounce may attack the 136.90-137.00 resistance confluence, including an ascending trend line from May 18 and 61.8% Fibonacci retracement of its pair’s February-March downside. Though, further upside will be capped by an upward sloping resistance line, previous support, connecting lows of March 18 to June 29, around 137.55.
It should also be noted that the August 21 low and June month’s top, respectively around 138.25 and 139.75, will question the pair’s further rise beyond 137.55.
Alternatively, the pairs’ declines below the 100-day SMA level of 135.60 may take rest on a 50% Fibonacci retracement level of 134.41.
In a case where the bears keep the reins past-134.41, 134.00 and June month’s low near 131.75 will flash on their radars.
GBP/JPY daily chart
Trend: Pullback expected
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