GBP/JPY technical analysis: Rebounds from 1-month lows, remains vulnerable to slide further

• The cross extended its recent downtrend and remained depressed on Thursday.
• Bulls seemed to show some resilience near 200-hour SMA on the 4-hourly chart.
• Technical set-up seems tilted in favour of bearish traders amid Brexit uncertainties.

The GBP/JPY cross remained depressed for the third consecutive session on Thursday – also marking the eighth day of a negative move in the previous ten – and dropped to near one-month lows around mid-131.00s
 
The recent pullback from over two-month tops has been along a descending trend-channel and reinforces a well-established downtrend, though bulls showed some resilience near 200-period SMA on the 4-hourly chart.
 
The lower end of the mentioned trend-channel coincides with 50% Fibonacci level of the 126.67-135.75 recovery move and should now act as a key pivotal point determining the pair’s next leg of a directional move.
 
Meanwhile, technical indicators on the mentioned chart maintained their bearish bias and have just started drifting into the negative territory on the daily chart, supporting prospects for a further near-term depreciating move.
 
However, traders are likely to wait for a sustained break below the mentioned confluence support, near the 131.30 region, before positioning for a slide towards 61.8% Fibo. level – ahead of the key 130.00 psychological mark.
 
On the flip side, any attempted recovery back above the 132.00 handle now seems to confront some fresh supply and seems more likely to remain capped near the 38.2% Fibo. level – around the 132.30-40 region.

GBP/JPY 4-hourly chart