Following the previous session’s loss on Wednesday, the GBP/JPY pair has remained quiet.
Below the 153.00 level, bears stay optimistic.
The momentum oscillator favors downward momentum.
During the European trading day, the GBP/JPY exchange rate is trending lower. After testing the 155.14 level on June 24, the currency pair remained under pressure.
GBP/JPY is trading at 152.83 at the time of writing, down 0.07 percent on the day.
Since the beginning of the month, the GBP/JPY cross has been in a steady downward trend on the daily chart. The pair has recovered from its June 21 low of 151.32, but it lacks the strength to maintain its gains.
A sustained breach below 153.00 might ratchet up the selling pressure and push the market closer to the monthly lows.
GBP/JPY would then challenge the first support level at 152.30 horizontal support.
The Moving Average Convergence Divergence (MACD) indicator has a negative bias and trades at the midpoint, indicating an approaching lower price movement. Any drop in the MACD would re-ignite a wave of selling opportunities.
Following that, traders will be looking for the June 18 low at 151.99, as well as the 151.40 horizontal support level.
Alternatively, a sustained move above the intraday high of 153.21 might push price closer to the 50-day Simple Moving Average (SMA) of 153.62. Bulls in the GBP/JPY pair were encouraged to retest 154.00, the key psychological level, after a daily close above the 50-day SMA.
Bulls in the GBP/JPY pair are now attempting to take out the previous high of 154.50 set on June 25.
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