GBP/JPY is under pressure. The pair has been on the downside within its descending channel since September 6, and is likely to post a new drop. The downside momentum is further reinforced by its bearish 50-period moving average, which maintains the strong selling pressure. In addition, the relative strength index is below its neutrality area at 50, and lacks upward momentum. To sum up, as long as 136.40 is not surpassed, look for further downsides to 135.00 at first.

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 135. A break below this target will move the pair further downwards to 0.7295. The pivot point stands at 0.7485. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.7350 and the second one, at 0.7295.

Resistance levels: 137.10, 137.80, 138.35

Support levels: 135.00, 134.50, 133.75