• GBP/JPY fades bounce off weekly low ahead of the preliminary UK Q2 GDP.
• Multiple failures to cross 50-day EMA, previous support line from March favor sellers amid steady RSI, bearish MACD signals.
• 200-day EMA offers strong support, six-week-old horizontal line adds to upside filters.

GBP/JPY holds lower grounds inside an immediate 30-pip trading range above 162.10 during Friday’s initial Asian session. In doing so, the cross-currency pair fails to extend the late Thursday’s rebound from the weekly bottom ahead of the preliminary readings of the UK’s second quarter (Q2) Gross Domestic Product (GDP).

Also read: UK GDP Preview: Early confirmation of BOE’s recession forecast

Technically, the pair has been on the bear’s radar for the last two weeks after it dropped below an upward sloping trend line from March to late July. Also keeping the sellers hopeful is the quote’s multiple failures to cross the 50-day EMA resistance, as well as bearish MACD signals and the steady RSI.

That said, GBP/JPY sellers currently aim for the 38.2% Fibonacci retracement level of March-June upside, near 161.95 ahead of challenging multiple supports around 161.15-10.

It should be noted, however, that the quote’s weakness past 161.10 appears difficult as the 160.00 psychological magnet will precede the 200-day EMA level surrounding 159.50 to challenge the bears.

Alternatively, the 50-day EMA level near 163.30 guards the GBP/JPY pair’s immediate recovery ahead of the support-turned-resistance line around 164.10.

Following that, a daily closing beyond the 23.6% Fibonacci retracement level of 164.55 becomes necessary for the GBP/JPY bulls to mark another attempt in crossing the 1.5-month-long horizontal hurdle close to 166.25-35.

GBP/JPY: Daily chart

Trend: Further upside expected