GBP/JPY - is Trading Within a Narrow Area - Bearish Bias - 03/30/2017 (GMT)

The GBP/JPY pair plummeted down to a fresh three-month low at 137.50 and created two negative daily sessions. Sterling is completing the third negative month in a row and plunged more than 4% as well as it is developing within a descending move since December 2016. Since then, it started a downward run while the pair is trading between the 50 and 200 daily SMAs for the last month. The Bollinger Band is squeezing and is endorsing the scenario for an aggressive movement probably to the downside. We are waiting for a move to the south until the 136.50 support barrier and if there is a penetration of this level we will see an aggressive sell-off towards 132.30.

From the technical point of view, the technical indicators are holding in the bearish path with some weak momentum. The RSI indicator is moving slightly lower following the pullback on the 50 level. The MACD oscillator is in the process to create a negative crossover with the trigger line whilst it lies below the zero line since mid-February.