GBP/JPY Price Analysis: Downside correction likely to challenge 150.00

• The pound falls for the second day in a row but manages to trim losses.
• GBP/JPY about to post the first weekly decline since January.

The GBP/JPY dropped to 150.55 on Friday and then it rebounded back to the 151.00 area. The rebound shows that despite losing upside momentum, the correction is not that strong yet, although technical indicators offer more negative signs session after session.

The pound was unable to hold above 152.00 which continues to be a critical technical level to the upside. With the price holding below 151.50, GBP/JPY is set to extend the correction.

In the daily chart, the RSI is moving south from extreme overbought levels suggesting an extension of the correction ahead. The next target is located at 150.00, a horizontal level and the 21-day SMA. A break under 150.00 should point to more weakness ahead. To alleviate the mounting bearish pressure, the pound needs to regain and hold above 152.00.

GPB/JPY daily chart