GBP/JPY Technical Analysis: Lower highs, bearish MAs favor JPY bulls

• The GBP/JPY hourly chart shows lower highs and lower lows pattern, meaning the JPY bulls (or GBP/JPY bears) are gaining strength.
• The key moving averages (50,100 and 200) are trending south, indicating the path of least resistance is to the downside. The 50-hour MA is all set to cross the 200-hour MA in a GBP bearish manner. And last but not the least, the RSI has rolled over in favor of the bears.
• Hence, the cross could soon explore levels below 147.20 (38.2% Fib R of June 28 low – July 16 high).

Hourly chart

Spot Rate: 147.35

Daily High: 147.59

Daily Low: 147.27

Trend: Bearish

Resistance

R1: 147.75 (10-day moving average)

R2: 148.21 (100-day moving average)

R3: 149.31 (July 16 high)

Support

S1: 147.20 (38.2% Fib R of June 28 low – July 16 high)

S2: 146.83 (50-day moving average)

S3: 146.54 (50% Fib R of June 28 low – July 16 high)