The GBPJPY currency pair has dropped by more than 700 pips since the beginning of the current month. After breaking the support of the channel, the sellers pushed the quotes to the key support within the round level of 140.00. As can be seen in the daily chart below, for several days the strength of declines slowed over support at 140.00. Still, the quotations are located at a considerable distance from the 20-day EMA, and therefore there is a chance of a rebound before the possible further move towards the south.
After switching to the 4-hour chart, we can see that the band of EMA 10/20 starts to change direction to upward, and the quotes have closed above it. The continuation of the correction is expected after breaking the local resistance at 142.60. Then the road to the wide resistance zone between 143.80 – 145.00 will be open.
