GBP/JPY technical analysis: Struggles between 7-month-old trendline, 200-day SMA

• GBP/JPY steps back from the late-May top, downward sloping resistance line since mid-March.
• Sellers await downside break of 200-day SMA amid overbought RSI conditions.

In addition to the failure to rise beyond multi-month old falling trend line, overbought conditions of 14-bar Relative Strength Index (RSI) also trigger the GBP/JPY pair’s pullback to 138.87 during Wednesday’s Asian session.

Sellers await the downside break of the 200-day Simple Moving Average (SMA) level of 138.72 to enter while targeting July month high of 137.80.

However, pair’s declines below 137.80 might not refrain from challenging 135.65/75 area including tops marked in late-July and September.

On the upside, pair’s sustained trading beyond a downward sloping trend line since mid-March, at 139.30, could escalate the run-up to 140.00 and 61.8% Fibonacci retracement of the downside since March month, at 140.35.

During the pair’s further rise above 140.35, late-May tops nearing 141.80 will be on the bulls’ radar.

GBP/JPY daily chart

Trend: pullback expected