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The British pound fell against its Japanese counterpart during the previous trading session within the descending official track after finding a resistance level around 161.50, which forced the pair to resume the bearish trend again.
On the technical side, today, we are inclined to the negativity, relying on the price stability below 161.50 and the pair receiving negative signals from the stochastic indicator on the 4-hour time frame.
We need to witness a clear and strong break of the 160.70 support level. That will facilitate the task required to visit 160.00, the first target, knowing that breaking the mentioned level increases and accelerates the strength of the downside trend, paving the road for visiting 159.30.
Activating the suggested bearish scenario depends on the price stability below 161.50 and its breach delaying the chances of a decline. Still, it does not cancel it, and we may witness a retest of 162.30 before retracing.
Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.
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