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GBP/JPY slips after support trendline break, tests downside levels
The cross was last around 218.16, holding above 218.00, with further weakness flagged if it falls below 217.53 and 217.53 would open levels down to 216.60, then 216.00.
GBP/JPY held above 218.00 on Wednesday after breaking a key support trendline, leaving sellers in control, according to FXStreet. The pair was trading around 218.16, down 0.05%, after retreating roughly 150 pips from a yearly high of 219.61.
FXStreet said the Relative Strength Index remains bullish but is trending toward the neutral 50 level, which could support additional downside. It added that the broader market structure still points to the downtrend remaining intact.
On the bearish case, FXStreet noted that a drop below the July 21 daily low of 217.53 could expose the April 30 high of 216.60, followed by the 216.00 level. Below that, it flagged the 50-day Simple Moving Average at 215.09 and the 100-day Simple Moving Average at 214.12 as the next supports.
On the upside, FXStreet said a move up to 219.00 would put the market in range to challenge the year-to-date high at 219.61, then the 220.00 psychological level.