GBP/JPY Technical Analysis: Descending trend channel favours the pullback

• GBP/JPY forms short-term descending trend channel on four-hour chart during early Tuesday.
• The pattern favours the pair’s pullback moves to the 142.70 and the 141.88 supports.
• On the break of 144.15 resistance, the formation gets negated.

The GBP/JPY pair trades little changed around 143.25 during early Asian session on Tuesday. The pair portrays a short term downward sloping trend channel that favours its pullback. The channel formation came in effect after the 100-day simple moving average (SMA) confined the pair’s upside during late-January month.

GBP/JPY: Four hourly chart

With an immediate descending trend channel, the GBP/JPY is more likely to revisit the 142.70 support prior to highlighting the 141.88 level comprising channel’s lower-line. Should the pair fails to bounce off the channel-support, the 140.70-60 horizontal-area and the 140.00 round figure may act as important rests.

In case, the prices continue trading downwards after 140.00, the 139.00 and the 137.30 could gain the bears’ attention.

Alternatively, an upside clearance of 144.15 negates the bearish chart pattern and opens the door for its recovery to 144.85. During the pair’s extended rise beyond 144.85, the 61.8% Fibonacci expansion of its latest pullback, near 145.35, could restrict further advances.