Downward movement on GBPJPY lasts for more than a month. On one hand it was triggered by a general weakening of the GBP against other currency pairs and on the other by key resistance test of 148.00. During this drop price respects downward channel edges which makes trading easier.
GBPJPY tested on Monday the lower limit (resistance) of the downward channel. This led to a bullish correction which is continued today. Current target of today’s rebound is the 141.70 area, which at this moment is the resistance of the channel. However, price may not go so high and it is possible that bearish movement will return sooner. We cannot say that trend have changed until price respects the channel.
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Bears now has two main targets. The closest one is support at 138.45, but it may be too weak to stop the current supply. The second goal is 7 month low at 136.10. This last level can stop the current downturn and reverse the trend.