The GBP/JPY cross extended its losing streak for the fifth consecutive day, trading around 191.00 during early European hours on Monday. Technical analysis reveals that the pair is intensifying its downward movement within a descending channel pattern, signaling a strengthening bearish bias.
The 14-day Relative Strength Index (RSI), a key momentum indicator, continues to decline toward the 30 level, reinforcing the ongoing bearish sentiment. Additionally, GBP/JPY remains below both the nine-day and 14-day Exponential Moving Averages (EMAs), further suggesting weakening short-term price momentum.
On the downside, the pair is testing the lower boundary of the descending channel around the 190.80 level. A break below this support would solidify the bearish outlook and put pressure on the currency cross to revisit its four-month low of 188.09, recorded on December 3, 2024.
Key resistance levels for GBP/JPY are found at the nine-day EMA around 194.52, followed by 194.99. A break above this latter level, coinciding with the psychological 195.00 mark, could shift the short-term momentum in favor of the bulls and bring the upper boundary of the descending channel at 198.00 into focus.
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