GBP/JPY Price Analysis: Corrective pullback battles previous support above 166.00

• GBP/JPY consolidates the biggest intraday losses in a week following the recent bounce.
• Weekly support-turned-resistance, short-term horizontal hurdle test recovery moves.
• Bearish MACD signals, downbeat RSI (14) hints keep sellers hopeful.
• Three-day-old resistance line adds to the upside filters, 100-SMA lures bears.

GBP/JPY picks up bids to pare intraday losses around 166.15-20 during Thursday morning in Europe. In doing so, the cross-currency pair jostles with the previous support line stretched from Tuesday.

Multiple supports surrounding 165.70-60 seem to have underpinned the quote’s latest rebound. However, a horizontal area including levels since June 13 and the support-turned-resistance line from Monday challenges the buyers around 166.20-30.

Also challenging the GBP/JPY buyers is the bearish MACD signals and the steady RSI.

It’s worth noting that even if the pair manages to cross the 166.30 hurdle, a downward sloping resistance line from Tuesday will challenge the upside momentum around 167.25.

Meanwhile, a clear downside break of the 165.60 could trigger a fresh fall targeting the 100-SMA level near 165.00.

Following that, the 50% Fibonacci retracement of June 09-16, near 164.40, will be important to watch as a break of which could direct GBP/JPY sellers towards the 200-SMA level of 162.35.

Overall, GBP/JPY is likely to consolidate the weekly gains despite the recent rebound.

GBP/JPY: Four-hour chart

Trend: Further weakness expected