- GBP/JPY holds below uptrend line
- Technical signs are negative
GBP/JPY extended its negative movement toward a fresh, almost five-month low of 187.63, holding beneath the medium-term uptrend line and showing signs for a bearish wave.
Technically, the stochastic oscillator is stretching the downside move in the oversold region, while the MACD is strengthening its negative momentum beneath its trigger and zero lines. Also, in the preceding sessions, the 20- and 200-day simple moving averages (SMAs) posted a death cross.
If the pair continues the downside structure, then it may find first support at the 183.70 area ahead of the 180.00 psychological mark, taken from the lows on August 5.
Alternatively, a rebound off today’s low could turn traders’ attention to the 189.30 resistance ahead of the short-term falling trend line and the 193.00 round number, which is also near the 20- and 50-day SMAs. Even higher, the 194.75 barrier and the flat 200-day SMA at 195.25 may pause upside structures.
To conclude, GBP/JPY is experiencing a fresh down leg with the sentiment remaining negative. However, any upside moves above the 200-day SMA and the 199.00 handle could switch the outlook to bullish.