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GBP/JPY Forming a Price Top

After rallying from 175.50 to 185 in February, GBP/JPY started to consolidate with support at 183.54. This week, price fell below the 183.54 level forming a price top out of the noted range.

GBP/JPY 4H Chart 3/6
(click to enlarge)

This week, we also had the Bank of England monetary policy statement, and the reaction from the market showed respect to the broken range as resistance. Price also held below the 100-, and 50-period SMAs after crossing under them. This is a bearish slingshot signal. Essentially, the market confirmed a price top and is suggesting a bearish outlook at least in the short-term.

The downside target first has the 181 up to the 200-period SMA in sight, but the key levels to monitor will be the 179.40-180.30 support/resistance area.