- GBP/JPY battles weekly support line after forming ‘double-top’ bearish pattern.
- Downward sloping RSI also keeps sellers hopeful, seven-week-old descending trend line adds to the upside filters.
GBP/JPY remains on the back foot around 152.50, flirting with short-term support, amid Monday’s Asian session.
The pair marked another pullback from 153.45-50 area during the last week, portraying a double-top bearish formation. However, the confirmation has a long way to go as it requires a sustained break below 148.45.
For now, a clear downside past 152.50 could recall the 150.80-75 support zone but any further weakness needs to conquer the 150.00 psychological magnet.
On the flip side, the corrective pullback will be challenged by the stated ‘double top’ formation near 153.45-50 and a downward sloping trend line from mid-June, surrounding 153.90.
It should be noted, however, that a clear run-up past 153.90 will seek validation from July’s top near 154.10 before challenging June’s high close to 155.50.
Overall, GBP/JPY is up for further weakness but bears await clear signals.
GBP/JPY: Four-hour chart
Trend: Further weakness expected
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