#GBPJPY @ 168.162 tumbled after testing 169.00, the head-and-shoulders right shoulder, so the pattern is still in play. (Pivot Orderbook analysis)

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• GBP/JPY tumbled after testing 169.00, the head-and-shoulders right shoulder, so the pattern is still in play.
• Short term, the GBP/JPY might consolidate around 168.00-169.00.
• GBP/JPY Price Analysis: Break below 168.00 could pave the way toward 167.00.

The pair currently trades last at 168.162.

The previous day high was 168.31 while the previous day low was 167.35. The daily 38.2% Fib levels comes at 167.72, expected to provide support. Similarly, the daily 61.8% fib level is at 167.95, expected to provide support.

The British Pound (GBP) climbed and tested the head-and-shoulders right shoulder but retreated after sellers stepped in just below the 169.00 figure, exacerbating a fall toward the 168.10 area. Hence, the GBP/JPY is trading at 168.16, registering minuscule losses of 0.04% as the Asian session begins.

The GBP/JPY daily chart remains neutral-to-upward biased. Failure to break above the right shoulder kept the pattern intact; hence, further downside is expected. However, the GBP/JPY must clear the November 23 daily low of 167.69, which would exacerbate a fall towards the head-and-shoulders neckline around 165.30/50. Even though the Relative Strength Index (RSI) is in bullish territory, its slope is flat, closer to the 50-midline. So, if the cross drops below 168.00, the RSI could give a sell signal, exacerbating a fall toward the neckline and beyond.

Short term, the GBP/JPY 4-hour chart depicts the cross advancing steadily on smaller chunks, registering a fresh daily high for the last eight days. On Wednesday, after hitting a daily high of 168.99, the cross plunged 90 pips as sellers stepped in on the top-trendline of an ascending channel. That said, the GBP/JPY is trading below Thursday’s daily pivot point, so the path of least resistance is downwards.

The GBP/JPY first support would be the confluence of the S1 pivot and the upslope trendline around 167.63. Once cleared, the next demand area will be the confluence of the 200-Exponential Moving Average (EMA) and the S2 daily pivot at 167.01.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 168.24 at the time of writing. Pair opened at 167.9 and is trading with a change of 0.2 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 167.46, 50 SMA 164.99, 100 SMA @ 164.1 and 200 SMA @ 162.45.

The previous day high was 168.31 while the previous day low was 167.35. The daily 38.2% Fib levels comes at 167.72, expected to provide support. Similarly, the daily 61.8% fib level is at 167.95, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 167.4, 166.89, 166.44
• Pivot resistance is noted at 168.36, 168.82, 169.32

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