Since November, the pair GBP/JPY was in an upward trend over a medium term trend line (blue line). Yesterday, following the output of the medium term bullish channel (black lines), investors sold heavily the pair that caused the break of the trend line. A sell signal has been given.

Currently, the price is testing a major short term support at 139.50. This level could allow a pullback on the bullish slant before the resume of its bearish movement. The downward break of 139.50 will liberate a high bearish potential. We could then see a retracement of a part of the last bullish. Targets at 138 and then 136 in extension can be fixed.

We recommend to trade only short positions as far as 142 is resistance. In case of return above this level, a buy signal will be given. We will then advise to trade the pair according to 142.

GBP/JPY 1h chart