GBP/JPY Price Prediction: Testing trendline as it continues sinking

• GBP/JPY has actually been up to a trendline for the August rally.
• The set remains in a drop with chances preferring an extension lower.

GBP/JPY is attempting to pierce the trendline for the uptrend because the August lows. If it achieves success and decisively breaches the trendline, it will recommend a follow-through lower to a fresh disadvantage target at 186.20, the 61.8% Fibonacci of the down relocation prior to the trendline (blue rectangular shape on chart).

The set is now in a brief and most likely medium-term sag (because the October 31 high) and according to technical analysis tradition patterns tend to extend, recommending the chances prefer a lot more disadvantage to come.

GBP/JPY Daily Chart

GBP/JPY is making its method to the next target for the set at around 189.56, the low of the Right-Angled triangle that formed in late September and early October.

It is likewise possible it might bounce from the present level at the trendline which is an assistance level.

The Relative Strength Index (RSI) is not yet oversold which shows the set might still have additional to fall before it gets oversold.

A definitive breach of the trendline would be one accompanied by a long red candlestick that closed near its lows and well clear of the trendline, or 3 successive red candle lights that breached the level.