- The rebound in the GBP / JPY pair from 129.30 was capped at 132.45.
- The pound fell to 131.50 after a two-day rally confirming the overall bearish trend.
The attempt to raise the GBP / JPY pair from its eight-week low to 129.30 failed to consolidate above 132.00 and the pair fell to 131.00 on Wednesday. to confirm the current bearish bias.
After rallying for two consecutive days, the pair reached resistance at 132.47, where the 50-day SMA is located, before falling back to 131.55, keeping the bearish momentum intact, with the pair posting highs. and lower lows in a clearly bearish trading channel.
On the downside, the pair could find support at 131.30 / 40 (May 15, 18 higher). Below, 130.60 (intraday low) would open the doors to key support at 129.30 (May 17 low).
On the upside, the pair should exceed the mentioned 50-day SMA at 132.45 to ease the downward pressure. Above, 133.20 (May 5 and 11 highs) could open at 135.45 (April 30 high).