A small daily Shooting Star at June’s high and from close to the top of a bullish channel left last week’s signals for GBP/JPY pointing temporarily lower. These were confirmed with 5 lower daily lows in a row and a loss of just over 1 ½ Big Figs from the top.
A sequence of higher weekly lows has been ended which is supporting the negative outlook, though the market is trading towards the 50 & 100 day average rates, levels expected to attract buyers.
However, in the absence of a buy signal, the outlook for this week remains bearish, selling on the open and at 173.22, Friday’s high, with a stop loss at 174.11, June’s top. Targets are to 172.10, the 13th June low, 171.26, the 100 day average and then 169.54, May’s base. 
