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  • GBP/JPY rebound from 129.30 has been capped at 132.45.
  • The pound retreats to 131.50 area after a two-day rally confirming the overall bearish trend.

GBP/JPY’s upside attempt from eight-week lows at 129.30 has failed to consolidate above 132.00 and the pair has retreated to the mid-range of 131.00 on Wednesday, to confirm the current bearish bias.

After rallying for two consecutive days, the pair has hit resistance at 132.47, where the 50-day SMA lies, before retreating to 131.55, maintaining the bearish momentum intact, with the pair printing lower tops and bottoms within a clear downward trading channel.

On the downside, the pair might find support at 131.30/40 (May 15, 18 highs). Below here 130.60 (intra-day low) would open the doors to key support level at 129.30 (May 17 low).

On the upside, the pair should break above the mentioned 50-day SMA, at 132.45 area to ease bearish pressure. Above here, 133.20 (May 5 and 11 highs) might open the doors to 135.45 (April 30 high).

GBP/JPY daily chart