GBP/JPY technical analysis: Drops for fifth consecutive day

• GBP/JPY is looking south with bearish setup on the daily chart. 
• The pair is trading in the red for the fifth straight day. 

GBP/JPY continues to lose altitude, having charted a bearish lower high near 138.30 last week. 

The pair is currently trading at 135.74, representing a 0.23% drop on the day. Notably, the currency pair is reporting losses for the fifth consecutive day, its longest losing streak since mid-May. 

With the daily chart showing lower highs and lower lows, and descending 5- and 10-day moving averages, the outlook remains bearish. As a result, a further drop toward 135.00 cannot be ruled out. 

That said, a bullish divergence of the relative strength index (RSI) would be confirmed if the pair closes in the green today. This is due to the fact that the RSI is still holding well above lows near 19 registered on June 1, as opposed to GBP/JPY's drop to fresh 5.5-month lows today. 

Daily chart

Trend: Bearish

Pivot points