• The pound has accelerated its reversal from week highs at 172.00.
• A breach of 165.00 would cancel the upside trend from late-September lows.

The Sterling depreciated across the board on Thursday, hammered by the dovish tone of BoE Bailey’s press release after November’s monetary policy decision. In this context, downward pressure on the GBPJPY has gathered pace, accelerating the reversal from 172.25 highs on Monday to test support at the 165.00 area.

A successful breach of the 165.00 level, (October 10 21, and 24 lows) would negate the upward trend from late=September lows and increase bearish pressure towards the 50 and 100 days SMAs, now at 164.00/15 area and, below there, probably 162.60 (October 11 high).

On the upside, the pair should break intra-day resistance at 166.00 and 167.15 to ease the near-term’s bearish pressure and aim toward session high at 168.20.

GBPJPY daily chart

Technical levels to watch