GBP/JPY was unable to extend its gain

The GBP/JPY pair was unable to maintain its gains for longer, resulting in the formation of a bearish candlestick pattern. Despite being neutral, a drop within the Kumo might cause the pair to continue its downturn.

Buyers regaining a three-month-old resistance trendline might pave the way for a test of the year’s high. The GBP/JPY remained under pressure ahead of the Bank of England’s (BoE) monetary policy decision on Thursday.

At the time of writing, the GBP/JPY pair is trading at 182.94, down 0.28%. For a bullish resumption, buyers must lift the exchange rates above 185.00, breaking a three-month-old resistance trendline that passes at around that level. Once cleared, that would open the path towards the year-to-date high at 188.80.

However, if sellers intervened and drove prices inside the Kumo, the pair may resume its downward trajectory. The key support level is 181.99, the Kumo’s bottom, followed by the December 11 low of 181.60. When it falls below that level, the 180.00 mark becomes available.