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Drop to almost 191.00, testing the lower boundary of the channel

Vaseline August 23, 2024

GBP/JPY may face immediate resistance around the 21-day EMA at 191.63.
The daily chart analysis indicates that there is a potential for a decreasing bullish bias.
A break below the ascending channel could indicate the emergence of a bearish bias.

GBP/JPY is regaining its recent gains from the previous two days and is trading around 190.90 during the Asian session on Friday. The daily chart analysis indicates that the pair is attempting to break below the lower boundary of the ascending channel, indicating a potential for a weakening bullish bias. Moreover, the 14-day Relative Strength Index (RSI) is positioned below the 50-level, indicating that there is a bearish momentum in play.

The MACD (Moving Average Convergence Divergence) line is above the signal line, suggesting that there is an upward momentum in the short term. However, the MACD line is still below the zero line, indicating that the overall trend is still bearish. This could indicate a possible recovery or a temporary upward movement within a broader downward trend.

In terms of resistance, the 21-day exponential moving average (EMA) at 191.63 level seems to be the immediate barrier. A break above the 21-day EMA could strengthen the bullish sentiment and the GBP/JPY pair crosses to explore the region around the upper boundary of the ascending channel at 195.50 level.

On the downside, a successful break below the ascending channel could trigger the emergence of the bearish bias and put downward pressure on the GBP/JPY cross to navigate through the area around the seven-month low of 180.09 recorded on August 5. Further support seems to be provided at throwback support at the 178.50 level.

GBP/JPY: Daily Chart

British Pound PRICE Today

The table below shows the percentage change of the British pound (GBP) against major quoted currencies today. The British pound was weakest against the Japanese yen.

	US dollar	EUR	GBP	Japanese yen	CAD	AUD	New Zealand	CHF
US dollar		-0.15%	-0.25%	-0.64%	-0.19%	-0.34%	-0.57%	0.07%
EUR	0.15%		-0.10%	-0.47%	-0.05%	-0.20%	-0.20%	0.21%
GBP	0.25%	0.10%		-0.40%	0.04%	-0.10%	-0.08%	0.07%
Japanese yen	0.64%	0.47%	0.40%		0.42%	0.28%	0.27%	0.46%
CAD	0.19%	0.05%	-0.04%	-0.42%		-0.15%	-0.13%	0.03%
AUD	0.34%	0.20%	0.10%	-0.28%	0.15%		0.02%	0.17%
New Zealand	0.57%	0.20%	0.08%	-0.27%	0.13%	-0.02%		0.15%
CHF	-0.07%	-0.21%	-0.07%	-0.46%	-0.03%	-0.17%	-0.15%

The heatmap shows percentage changes of major currencies relative to each other. The base currency is chosen from the left column, while the quote currency is chosen from the top row. For example, if you choose the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change shown in the box represents GBP (base)/USD (quote).