The GBP/JPY currency pair continues to decline, having rebounded from the upper limit of downtrend. The breakthrough of support level 131.71 will set a target to 130.00-130.10 for the pair.
Earlier on a 4-hour chart, the GBP/JPY has formed the combination of candlesticks Bearish Engulfing, thus indicating the downward movement. This candlestick appeared after the currency pair did not break through the mark of 135.00, thus denoting that the bears stared to increase their influence here. The breach of Fibonacci correctional level of 23.6 confirms this viewpoint. Moreover, the GBP/JPY has formed one more bearish combination of candlesticks Falling Three Methods.
However, if the resistance level of 132.96 is broken through the short positions should be closed, since it will lead to advance to 135.00.