GBP/JPY technical analysis: On the verge of confirming a fresh bearish breakdown

• Having faced rejection near 200-hour SMA, the GBP/JPY cross turned sharply lower on Tuesday and snapped three consecutive days of winning streak.
• Persistent fears of a no-deal Brexit continued denting sentiment around the British Pound and turned out to be the only factor exerting some fresh pressure.

The recent bounce from multi-month lows has been along a short-term ascending trend-channel. Given the latest leg of downfall since the beginning of this month, the mentioned trend-channel constituted towards the formation of a bearish continuation – Flag chart pattern.

With technical indicators on hourly/ daily charts holding in the negative territory, a convincing breakthrough the trend-channel support will confirm a fresh bearish breakdown and pave the way for a further near-term depreciating move towards the key 135.00 psychological mark.

A follow-through selling would turn the cross vulnerable to extend the bearish trajectory further towards challenging the 134.00 round figure mark, with some intermediate support near the 134.60-50 region. 

On the flip side, attempted recovery might now confront some fresh supply near the 136.00 handle and any subsequent up-move seems more likely to remain capped at 200-hour SMA, currently near the 136.25 region – coinciding with the trend-channel resistance. 

GBP/JPY 1-hourly chart