• GBP/JPY remains depressed, extends previous day’s pullback from two-week top.
• Seven-week-old support line, 61.8% Fibonacci retracement on bear’s radar.
• Buyers need validation from 38.2% Fibo. level to retake controls.

GBP/JPY extends the previous day’s bearish bias towards breaking the 154.00 round figure heading into Thursday’s London open.

In doing so, the cross-currency pair tests 50.0% Fibonacci retracement (Fibo.) of October’s advances amid descending, but not oversold, RSI line.

Keeping the GBP/JPY bears hopeful is the pair’s pullback from the 200-SMA and a descending trend line from October 20.

That said, the current weakness eyes an upward sloping support line from early October, near 152.80. Though, a clear break of the 50% Fibo. the level near 153.70 becomes necessary for the same.

Also acting as a downside filter is the 61.8% Fibonacci retracement level close to 152.65 and September-end peak of 152.57.

Meanwhile, GBP/JPY rebound needs to cross the 200-SMA level of 154.70, not to forget the monthly resistance line near 154.55, to recall the buyers.

Even so, early November’s swing low and 38.2% Fibo. challenge the quote’s further upside around 154.80, a break of which will direct the pair towards crossing the 155.00 and 156.00 thresholds while aiming for the 156.25 resistance.

GBP/JPY: Four-hour chart

Trend: Further weakness expected