GBP/JPY Technical Analysis: Plummeting Pound drops out of descending channel

• The previous twenty-four hours  of trading saw the GBP/JPY struggling to make headway against a broken descending trendline, and the pair remains constrained just below the 144.00 key figure heading into the new week where extra emphasis could be seen on Brexit talks as the clock continues to wind down on a November deadline for a workable trade deal structure, the bones of which remains unseen, but battered GBP bulls could be looking to stage a recovery from Friday’s bottom at 142.77.

GBP/JPY, M5

• Over the last week,  the Guppy saw declines accelerate into new lows after failing to recover at the 144.00 barrier, dropping steadily from sequential lower highs as the Sterling continues to take a beating in broader markets, driven largely by Brexit headlines and fundamental market factors, and bidders will be looking to stake a new floor in off of Monday’s early bullish break of last week’s bearish trendline.

GBP/JPY, M30

• Looking back over the past month,   a build-up of short sentiment in the Guppy has seen the pair accelerate out of the bottom end of a downside channel, and the former lower bound could see itself revert into a declining resistance line that bidders will have to deal with as the charts continue to unwind their bearish stance.

GBP/JPY, H4