“¢ The cross now seems to have entered a bearish consolidation phase and was seen oscillating in a narrow band near the lower end of its daily trading range, or near three-month-lows.
“¢ Slightly oversold conditions on hourly charts seemed to be the only factor that helped find some support near 50% Fibonacci retracement level of the 135.80-148.88 recent up-move.
However, given the overnight break down below an important horizontal confluence support – comprising of 38.2% Fibonacci retracement level and 100-day SMA, bearish oscillators point to an extension of the near-term downward trajectory.
A follow-through weakness below the mentioned 50% Fibo. support near the 142.35-30 region will reinforce the bearish outlook and turn the cross vulnerable to accelerate the slide towards testing the 142.00 round figure mark en-route 141.30 zone.
On the flip side, any attempted recovery move might now confront some fresh supply around the 143.00-143.10 area and seems more likely to remain capped at the confluence support break-point now turned resistance, near the 143.70 region.
GBP/JPY daily chart
-636930043311839559.png)
Share
