In today’s technical spotlight, let’s examine the British Pound to Japanese Yen (GBP/JPY), where a clear bearish signal has emerged.
The pair has broken below a well-formed channel up formation, outlined with black trend lines. This pattern can also be viewed as a bearish flag — a corrective structure within a broader downtrend. The downside breakout confirms a continuation of that larger bearish trend.
Supporting the sell signal, the price has also slipped beneath a key horizontal support marked in yellow. This level had provided a floor in recent sessions, and its loss now serves as resistance, further reinforcing the bearish outlook.
Additionally, the pair is trading below a red midterm downtrend line, which adds more pressure on the bulls. As long as the price remains under both the yellow and red resistance levels, the sentiment stays negative.
The next major support to watch is the orange horizontal level — the lows from May 6th. That serves as the immediate target for this bearish move.