• GBP/JPY pauses two-day recovery moves inside one-month-old bearish channel.
• Bearish MACD signals join recent pullback to suggest further grind to the south.
• 160.30-35 appears a tough nut to crack for bulls, sellers have multiple hurdle to visit.

GBP/JPY fades from a two-day rebound near 159.00 as traders await UK data during Tuesday’s Asian session.

In doing so, the cross-currency pair remains inside a one-month-old descending trend channel formation, recently firmer around the 50% Fibonacci retracement (Fibo.) of December 2021 to April 2022 upside.

It’s worth noting that the GBP/JPY breakout of 50% Fibo enables the quote to aim for further upside. However, bearish MACD signals and a strong resistance to the north comprising the 50-day EMA and upper line of the stated channel, near 160.35-30, could challenge the buyers.

Meanwhile, a clear upside break of the 160.35 won’t hesitate to aim for the monthly high surrounding 163.90.

Alternatively, pullback moves may aim for the 50% and 61.8% Fibonacci retracement levels, respectively near 158.65 and 156.35.

Even so, the 200-day EMA and an upward sloping support line from late 2021, close to 156.00 and 152.70 in that order, will act as the last defenses for buyers.

GBP/JPY: Daily chart

Trend: Further weakness expected