• GBP/JPY fades the bounce off weekly low, stays below short-term important Daily Moving Averages (DMAs).
• One-week-old retreat, steady RSI also underpin bearish bias.
• Convergence of 50-DMA, April’s low and 50% Fibonacci retracement appears tough nut to crack for sellers.

GBP/JPY remains pressured around 162.55, grinding lower of late, while portraying the market’s pre-Fed anxiety during early Wednesday.

The cross-currency pair bounced off the weekly low on Tuesday but failed to cross the 10-DMA and 21-DMA confluence. The resulted pullback also gained support from steady RSI and a U-turn during the last week to keep sellers hopeful.

That said, 38.2% Fibonacci retracement (Fibo.) of March-April upside, around 161.75, appears immediate support to the GBP/JPY prices.

Should the quote drops below 161.75, the odds of witnessing a further fall towards the 159.50-55 support confluence, comprising 50-DMA, 50% Fibo and the previous monthly low, can’t be ruled out.

Alternatively, 10-DMA and 21-DMA restrict the GBP/JPY pair’s short-term rebound near 163.00 and 163.70 respectively.

Following that, March’s high of 164.65 will test the bulls before directing them to the previous monthly peak of 168.43.

To sum up, GBP/JPY prices tilt southwards but the bears will have a tough task breaking 159.60-55 support.

GBP/JPY: Daily chart

Trend: Further weakness expected