GBP/JPY - Holds in a Range - Completing Five Red Weeks - 06/08/2017 (GMT)

The ninja pair is trading fairly directionless over the last seven months and now is posting the fifth negative week in a row. On a weekly timeframe, the GBP/JPY pair is moving within a sideways channel with upper boundary the 148.10 resistance level and lower boundary the 135.60 support area.

Going to a short-term chart, the pair plunged more than 3.5% since May 10th following the bounce off the 148.10 strong barrier. Currently, the price is developing within the 50 and 100 SMAs and our forecast is a strong volatile move after the announcement of the new U.K. Prime Minister. A drop to the south below the 100-SMA will drive the pair towards the 135.60 obstacle. Otherwise, the price will jump above the short-term falling trend line which coincides with the 50-SMA and will hit the 144.80 resistance handle. RSI indicator is sloping to the downside whilst the MACD oscillator is moving below its trigger line, both with weak momentum.