In our previous technical comment on the GBPJPY pair , we have suggested potential downside move, reinforced by coverage from SMA20 and SMA50 within the downside Pitchfork channel.
The pair has been able to present new negative catalysts that could assist bears to attack the initial support of medium-term basis at 175.45, as Stochastic has overlapped negatively, while the upper line of Pitchfork has been able to push the GBP/JPY lower.
Yesterday’s long black candlestick in addition to the strong bearish tendencies appeared today might assist bears to clear the aforesaid support.
We remain bearish on the pair aiming to clear this support on the way towards the psychological level of 170.00.