GBP/JPY Price Analysis: Falls below 191.00 toward ascending channel's lower boundary

• GBP/JPY tests the lower boundary of the descending channel at 190.80 level.
• The 14-day RSI declines toward the 30 level, reinforcing the persistent bearish bias.
• The nine-day EMA at 194.52 appears as the primary resistance.

The GBP/JPY cross extends its losing streak for the fifth consecutive day, trading around 191.00 during the early European hours on Monday. An analysis of the daily chart indicates that the price movement within the descending channel pattern is intensifying, which points to a strengthening bearish bias.

The 14-day Relative Strength Index (RSI), a key momentum indicator, holds falls toward the 30 level, reinforcing the ongoing bearish momentum. Moreover, the GBP/JPY cross trades below both the nine-day and 14-day Exponential Moving Averages (EMAs), further suggesting weaker short-term price momentum.

On the downside, the GBP/JPY cross tests the lower boundary of the descending channel at 190.80 level. A break below this pattern would reinforce the bearish bias and put pressure on the currency cross to approach its four-month low at 188.09, which was recorded on December 3, 2024.

The GBP/JPY cross could find primary resistance at the nine-day EMA at 194.52, followed by the 194.99 level. A break above the latter, which is aligned with the psychological level of 195.00, would improve the short-term price momentum and support the pair to approach the descending channel's upper boundary at the 198.00 level.

GBP/JPY: Daily Chart