GBP/JPY is trying to pierce the trendline for the uptrend since the August lows. If it is successful and decisively breaches the trendline, it will suggest a follow-through lower to a fresh downside target at 186.20, the 61.8% of the down move prior to the trendline (blue rectangle on chart). The pair is now in a short and probably medium-term downtrend (since the October 31 high) and according to technical lore trends have a tendency to extend, suggesting the odds favor even more downside to come. GBP/JPY Daily Chart (Click on image to enlarge)GBP/JPY is making its way down to the next target for the pair at around 189.56, the low of the Right-Angled triangle that formed in late September and early October. It is also possible it could bounce from the current level at the trendline which is a support level.The Relative Strength Index (RSI) is not yet oversold which indicates the pair could still have further to fall before it gets oversold. A decisive breach of the trendline would be one accompanied by a long red that closed near its lows and well clear of the trendline, or three consecutive red candles that breached the level.More By This Author:USD/JPY Price Prediction: Breaks Out Of Price Pattern And Declines AUD/USD Holds Steady Above 0.6500, Lacks Bullish Conviction Amid Trade War Fears Gold Price Pares Intraday Losses, Keeps The Red Amid Reviving USD Demand
GBP/JPY Price Prediction: Testing Trendline As It Continues Sinking
