On H4 chart of GBP/JPY pair we have a very clear situation. Price falls in a descending channel, and subsequent corrections end in the region of the previous low. This makes the chart very technical.
Currently such a clear state can be spoiled by parliamentary election in United Kingdom, which may distort such legible quotes. As for the price action itself – we are currently attempting to descend into a new low of the downtrend and the breakout of the last low should help in this.
On daily chart we can see that we don’t have any strong support on the way to trend line. Therefore bears have quite a space that can be filled if the election results do not surprise the markets.
