FX.co ★ Intraday technical levels and trading recommendations on GBP/JPY for July 29, 2014

Recent bottoms were established around 169.55 and 171.05 (corresponding to the lower limit of the depicted bullish channel).

These bottoms prevented further bearish decline each time the pair visited them and provided enough buying pressure to keep pushing higher.

The bulls have reached the upper limit of the depicted channel located roughly at 175.35 where bearish pressure was expressed obviously.

Since then, the GBP/JPY pair has been downtrending approaching 50% Fibonacci Level around 172.45.

The bears need to keep their 4H closure below 172.45 in order to pursue towards further bearish targets.

Note the bullish pressure being expressed at 172.60 when the bears challenged previous daily low around 172.70.

Indecisive daily closures are displayed on the DAILY chart (representing the market hesitation), so SELLERS should be conservative with their targets.

However, if the bears manage to breakdown the zone between 172.45 - 171.80, sellers should extend their targets towards 171.00 initially.