GBP/JPY Price Analysis: Bounces off 21-day SMA to snap three-day losing streak

• GBP/JPY recovers from the four-day low.
• 50% Fibonacci retracement challenge pullback moves.
• Bulls are less likely to be convinced unless breaking 200-day SMA.

Following its drop to the weekly low, GBP/JPY bounces off 21-day SMA, currently around 132.90, amid the Asian session on Thursday. Even so, the pair remains below 50% Fibonacci retracement of its February-March downside.

Not only 50% Fibonacci retracement level near 134.50 but 61.8% of Fibonacci retracement and 200-day SMA, respectively close to 136.95 and 137.20, also questions the pair’s latest pullback.

Alternatively, a daily close below 21-day SMA level of 132.30 can take rest on 132.00 mark, near to 38.2% Fibonacci retracement and March 20 high.

If at all there prevails a further selling pressure below 132.00, the bears could target 130.00 psychological magnet and 23.6% Fibonacci retracement around 129.00.

GBP/JPY daily chart

Trend: Pullback expected