GBP/JPY downside breakout
The GBP/USD pair found strong resistance, supply, around the 157.61 level signaling that the upwards movement is over. As you can see on the h4 chart, the pair failed to jump above 157.61 signaling exhausted buyers. Now, it has dropped below the 156.08 former low indicating strong downside pressure.
Personally, I’ve drawn a downtrend line. As long as it stays under the downtrend line and below 156.08 former low, the GBP/USD pair could extend its downside movement.
GBP/JPY trading conclusion
The current breakdown below 156.08 indicates a further drop and is seen as a potential selling opportunity. GBP/JPY could approach and reach fresh new lows as long as it stays under the downtrend line.
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