GBPJPY to extend retracement

From the upward trend over the past month, the price action has broken below the 23.6% retracement level. The price action also seems to be adhering to a downward wedge. If the price breaks out of this shape n the downward direction, expect a bearish move, which could extend to the 38.2% retracement level which is almost perfectly aligned with the second daily support level (traditional).

The Relative Strength Index has also fallen below the 50 mark, confirming a possible downtrend. If then price action continues to break through the Fibonacci retracement levels, this indicates a downward trend forming. Monday morning will also see the Mortgage Approvals, money supply and net lending to individuals data releases for the UK. Lower than expected readings will put bearish pressure on the pair.