GBPJPY signaling a bearish breakdown


The GBPJPY cross has been consolidating recently, but Friday's sell-off might push it below the short-term uptrend line, which could mean the bearish trend is about to resume.

During the London session, the cross was trading 0.2% weaker, changing hands at around 132.55.

It looks like the bullish trend line will indeed be broken to the downside, which might lead to further selling. The next target for bears will be at the current swing of 132.00. If this level is taken out as well, further decline toward 130.00 could occur (from the medium-term perspective).

The cross is still far from oversight conditions, according to the RSI indicators, meaning there is a lot of room to fall. 

Alternatively, the intraday resistance seems to be in the 133 zone, and if not held, bulls could push the pound toward 133.50.

Sentiment seems negative after yesterday's news about Gilead's drugs failing some clinical tests, which sent stocks reeling.
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