- GBP / JPY begins trading for the week with a breakout downside of 200-HMA.
- Bearish MACD, fundamentals also favor sellers, bulls can wait for a new monthly high.
GBP / JPY falls to 138.89, after a lower start of the week spread from Friday’s close of 139.40 early Monday morning in Asia. In doing so, the quote breaks the 200-HMA support in a bearish MACD.
Not only technical indicators but also bearish fundamental signals emanating from Brexit and a new variant of the coronavirus (COVID-19), highlighted by the UK, are also weighing on the quote.
Read: GBP / USD: Brexit woes, new strain of covid hints at bear’s return close to 31-month high
As a result, bears should hold the reins as they look to the December 15th low near 138.30. However, any other downside won’t hesitate to challenge the monthly low around 136.80.
It’s also worth noting that any further weakness beyond 136.80 may drive the GBP / JPY bears down to October’s low near 134.40.
Meanwhile, the 140.00 threshold may keep the pair’s immediate upside before the monthly high near 140.70.
In a case where the bull comes back and manages to break through 140.70 at the daily close, September’s 142.71 peak will flash on their radar.
GBP / JPY hourly chart
Trend: further decline expected
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