- GBP / JPY technical indicators still favor the downside.
- While below 153.00, the pound appears vulnerable to further losses.
The GBP/JPY failed to rebound 153.75 and fell back below key short-term moving averages, and is currently below 153.00, at one-month lows, looking vulnerable.
The pound needs to recover quickly from 153.00 to ease the downward pressure. The negative tone will continue to prevail, as long as it is below 153.75. If the pound manages to rise above the mentioned level, it could have established an interim bottom. Above, the next resistance is seen around 155.00.
As long as it is below 153.00 (horizontal level, and also the 21 SMA on the four-hour chart), further losses seem likely. The potential target is the 152.25 zone. If the decline continues below 152.00, there is a strong support area at 151.60 that should limit the downside. A rebound from 151.50 / 60 seems likely, favoring a pause in the decline of GBP / JPY, before another leg lower.
4 hour chart