FX.co ★ ckerluke | GBP/JPY

The GBP/JPY pair is showing a classic pullback today after attacking the highs. The price reached a peak around 217.163 but failed to consolidate there and is now confidently sliding down. The purple moving average has turned and is hanging over the quotes, having turned from support into resistance. Right now GBP/JPY is trading around 216.548, stuck below the red horizontal level at 216.650. This level has become key — it is exactly from there that the price bounced down, confirming the shift in market sentiment. The indicators are painting a bearish picture: MACD has moved into negative territory at -0.0723, and the histogram is expanding downward. KST is also in the red at -0.8254. Both tools are simultaneously pointing to sellers’ dominance. If GBP/JPY fails to quickly return above 216.650, the next target will be the 215.992 level. And from there it’s not far to 215.625 and 214.905. For the bulls, it is critically important to hold the current levels and show a reversal pattern, otherwise the correction may grow into a full-fledged downtrend. Interestingly, each bounce from the highs is lower than the previous one — the bears are gradually seizing the initiative.