Waves around 181.00; bulls await a breakthrough

• GBP/JPY could form a bullish-engulfing pattern if it reclaims 182.00.
• The first support stands at 181.00, with a potential drop towards 180.00.
• Tenkan-Sen line at 182.40 serves as immediate resistance.

The GBP/JPY slides for the fourth straight day after data from the United Kingdom (UK) bolstered the Pound Sterlin (GBP), as the pair bounced late in the session from Tuesday’s daily lows around 180.78. At the time of writing, the GBP/JPY is trading at 181.38, registering minuscule losses of 0.04% as the Asian session starts.

GBP/JPY Price Analysis: Technical outlook

From a daily chart perspective, the GBP/JPY, after touching a weekly low of 180.78, buyers entered the market, lifting the pair back above the 181.00 mark. Tuesday’s candlestick reassembled a hammer, suggesting buying pressure outweighed sellers, which seem to have book profits, after UK’s data.

If GBP/JPY reclaims the 182.00 figure, that could form a bullish-engulfing candle pattern, suggesting further upside is expected. In that outcome, the GBP/JPY next resistance would be the Tenkan-Sen line at 182.40, followed by the 183.00 figure, ahead of the July 10 daily high at 183.22.

Conversely, GBP/JPY’s failure to crack 182.00 could exacerbate a continuation of the ongoing downtrend. That said, the first support would be 181.00. Once cleared, the next support would be the current weekly low of 180.78, followed by the Senkou Span A at 180.37, and then the 180.00 figure.

GBP/JPY Price Action – Daily chart